The Supreme Court on Monday dismissed a petition filed by the Securities Exchange Board of India (SEBI) against Reliance Investment Holdings and its promoters, Mukesh Ambani, Anil Ambani and other entities over alleged violations of takeover regulations concerning a transaction that has its origins in 1994.A Bench comprising Justice JB Pardiwala and Justice R Mahadevan while criticizing SEBI said, “The transaction dates back to 1994, we need to put an end to this dispute somewhere,” the Bench said.
Criticising the inordinate delay by SEBI in investigating the issue as well as in adjudicating it and pursuing the ensuing litigation.
The Bench said,”We are in November 2024 now, you filed the appeal in 2023. The transaction itself dates back to 1994, we need to put an end to this dispute somewhere,” the Bench said.
Senior Advocate Arvind Datar appeared for SEBI and argued that the defects in the appeal were cured on time.
Senior Advocates Harish Salve and Ritin Rai with advocates KR Sasiprabhu, Aditya Swarup and Vishnu Sharma represented Ambani and other respondents.
The Court refused to accept any arguments and dismissed the plea.
The case pertains to that on December 10, 1992, shareholders of Reliance Industries Limited (RIL) approved the issuance of Non-Convertible Secured Redeemable Debentures (NCDs) with detachable warrants.
On January 12, 1994, RIL allocated 6 crore NCDs worth ?50 each to 34 entities, along with 3 crore warrants.
Each warrant allowed holders to receive two equity shares of RIL upon paying ?150 each within six years. These warrants were tradable and disclosed to the Stock Exchange in 1994.