Mumbai, Nov.1 (ANI): Revelation made by anti-graft crusader Arvind Kejriwal of an alleged nexus between the ruling Congress Party, the main opposition Bharatiya Janata Party and Reliance Industries reduced the share price of the group by 1.25 percent on Thursday.
Kejriwal, whose group India Against Corruption (IAC) has won publicity in India by accusing ruling Congress party chief Sonia Gandhi's son in law Robert Vadra of taking part in shady dealings, said on Wednesday that Reliance has profited from cosy relationships with a string of government ministers.
Those ministers favoured the company in its oil and gas ventures off the Andhra coast, Kejriwal told a crowded news conference in New Delhi on Wednesday (October 31)
Reliance Industries, controlled by Mukesh Ambani, India's richest person, said in a statement that the allegations were "devoid of any truth or substance whatsoever".
The activist cum aspiring politician also added that the BJP led National Democratic Alliance government in 2004 had allotted the Krishna-Godavari Basin to Reliance for procuring natural gas.
Following the allegations, the share prices of Reliance industries fell by $0.18 or 1.25 percent and according to market expert, Sunil Shah, Kejriwal has managed to create some nervousness amongst investors.
"From yesterday's closing price, Reliance industries has come down by, as I am talking to you, 10 rupees ($0.18), which is 1.25 percent down from yesterday's closing. Obviously theirs slight cautiousness in the market, investors are cautious and after the media briefing of Mr. Arvind Kejriwal, where he alleged a nexus between the group and the politicians. So maybe at this point of time the reason is that the investors may feel some nervousness and that's the reason it is down by 1.25 percent," said Sunil Shah in Mumbai.
The allegations made front page news in all the leading English and vernacular national dailies of the country.
Shares in Reliance Industries rose nearly 2 percent on Monday (October 29) on hopes the appointment of a new oil minister would improve what has been seen as a contentious relationship between the energy conglomerate and the government.
Reliance, controlled by billionaire Mukesh Ambani, Asia's second-richest man, had clashed with the former oil minister Jaipal Reddy over gas output at the conglomerate's KG-D6 block on Andhra coast.
While Reliance has long been perceived by many Indians as politically influential, investors say the firm's relationship with New Delhi has recently been fractious as a result of the performance of its flagship gas project on the east coast.
Reliance and its partner BP Plc have blamed technical problems for falling gas production, and have sought permission to charge higher prices to cover spending, but the government has so far refused to approve higher gas fees. (ANI)