Reliance Industries clarifies on Rs 1700 crore penalty hoax

Reliance Industries, on Thursday, clarified to the exchange that it has not received any notice from the government regarding penalty in the recent past. The exchange had sought clarification from Reliance Industries on media reports about a penalty of Rs. 1700 Crore.

According to the news article, the government had imposed a new penalty of $ 264 million (about Rs 1,700 crore) on Reliance Industries Ltd and its partners for producing less than the targeted natural gas from eastern offshore KG-D6 fields in 2015-16.

Reliance, in its clarification said that the details in media reports seems to have been taken from the last notice of November 3, 2016 received from the government for which the company had  made appropriate disclosures

The company maintained that in carrying out petroleum operations, the contractor has complied with all the applicable regulations and provisions of the production sharing contract.

The Production Sharing Contract (PSC) allows RIL and its partners BP PLC of the UK and Canada’s Niko Resources to deduct all capital and operating expenses from the sale of gas before sharing profit with the government.