Mukesh Ambani donates 11 crores

FluteHolder wrote:Nice. So may be it is kind of 'hush' money for future contracts or any investigations of Reliance?  Either way, if the 11 crores are used properly that is the better outcome of this...

The Krishna-Godavari basin is home to one of the most lucrative gas deposits in the world, as was discovered in 2002, and estimated to be almost 40 times that of the Bombay High basin. While the basin is located in the State ofAndhra Pradesh, the Government under Naidu chose to turn an obliging blind eye to its rights to the discovery on its soil, while allowing Naidu’s close associate Ramoji Rao to be the vehicle of the quid pro quo. In fact, there was also a note/letter to Naidu by the senior officers of the Government cautioning him that the State ofAP should also bid for the gas by forming a company like Gujarat had done. This piece of advice was wholly ignored by Naidu. In the process of exploring gas reserves in KG basin, Reliance industries indulged in many violations by hindering fishermen and polluting large extent of waters which caused unaccountable damage to environment and marine life.

Ramoji Rao’s company Margadarsi Financiers had fallen on hard times in the year 2007 when its irregularities and violations became public. Subsequently a committee of enquiry was constituted by Govt. of AP which revealed that Rs.2,600 crores of money was collected from public by violating Reserve Bank of Indianorms and regulations and it was declared that it was impossible for the company to repay its several depositors.

Despite the fact that almost all of Rao’s companies were in severe financial difficulties, Rao surprisingly offered through the news media to repay the full amount of Rs.2600 crores due to the depositors. This was followed by an assurance by him to thisHon’ble Courtfollowing which the amount due was repaid. A large portion of amount of so called deposits accounting to nearlyRs.275 Cr was declared as unclaimed initially.

In consideration for the favour done by the Respondent No. 8 in allowing the State’s K.G.Basin claim to be brushed under the carpet, the Reliance group facilitated the payout of Ramoji Rao’s debts to his depositors. This was carried out through known associates and friends of Mukesh Ambani.