Date:18/08/2008 URL: http://www.thehindubusinessline.com/2008/08/18/stories/2008081850350800.htm

Need for disclosure

I read with interest the edit page piece titled “The worrisome imbalance” by Mr S. Venkitaramanan (Business Line, August 11). In a section of his article, writing in defence of Reliance Industries, Mr Venkitaramanan says: “Skill in exploiting their comparative advantages in exporting to countries, such as the US, deserves to be encouraged instead of being subjected to a windfall tax, as is being threatened by Johnny come lately in the political scene.”

As you are aware, in the past few months, the Samajwadi Party and the Left have urged the Government to consider the imposition of a windfall profit tax on Reliance Industries to whom the government has doled out liberal tax bonanzas and tax holidays and given export-oriented status, while the public of this country reels under an acute shortage of petro products and unaffordable prices of petrol, diesel, and LPG.

It is important, therefore, for your readers to know the background prompting Mr Venkitaramanan to write in favour of refiners such as Reliance Industries. It is a matter of record that he has been a Director on the Board of Reliance Industries since 1997 till the present time and has been the beneficiary of director’s fees of over Rs 1 crore paid to him every year.

It is also a fact that RIL appointed a Chennai-based investment and financial consultancy firm, controlled by a close relative of Mr S. Venkitaramanan, on a “consultancy basis” since 1998 for a fee of Rs 20 lakh at that time.

RIL Executive Director, Mr Nikhil Meswani, signed the letters appointing this company. Two other Chennai-based companies controlled by another close relative of Mr Venkitaramanan, were appointed retainers by RIL and Reliance Share & Stock Brokers Pvt. Ltd..

It is important when articles by someone are published in publications such as yours, an explanatory should be provided to the readers about the author’s links to the organisation in question and his motives for writing such articles.

Amar Singh, MP, Rajya Sabha, New Delhi