Supreme Court Reverses Order for RIL to Return Rs 447 Crore

India's Supreme Court overturned an earlier tribunal order that required Reliance Industries to pay Rs 447 crore due to allegations of fraudulent trading of shares in Reliance Petroleum Ltd. The court found errors in interpreting fraud rules but agreed on penalties for disclosure violations.

The Supreme Court of India has overturned a previous directive ordering Reliance Industries Ltd (RIL) to return Rs 447.27 crore. This ruling was initially linked to alleged manipulation of Reliance Petroleum Ltd (RPL) shares back in 2007.

The appeal by RIL challenged the November 2020 decision by the Securities Appellate Tribunal (SAT), which dismissed RIL’s contest against an earlier SEBI ruling. The SAT had accused RIL of making undue profits through deceptive trading practices. However, the Supreme Court noted procedural errors in the SAT's interpretation concerning fraud regulations.

The court, while overturning the disgorgement order, upheld penalties related to failure in meeting disclosure obligations. It ordered the refund of Rs 250 crore previously deposited by RIL following a conditional appeal. The court's decision partially supports RIL's position, addressing the issue of fraud under SEBI’s provisions.