The Enforcement Directorate has sought the finance ministry's nod to approach authorities in Iraq, Lebanon and Jordan for details on whether Mukesh Ambani group's Reliance Petroleum paid anything extra to Saddam Hussein's regime to secure oil contracts under a UN programme.
In its letter to finance ministry, the ED said that a payment 'over and above the actual value of oil by RPL or on their behalf by some other person/entity to the Iraqi authorities without the permission of the RBI cannot be ruled
out.'
As per the Volcker report, a surcharge amount of over $3.5 million was paid in respect of the 3 contracts to an Iraqi account maintained with Jordan National Bank in Jordan through wire transfers from First National Bank in Lebanon.
The ED has sought the go-ahead from the department of revenue for issuance of letters of request under Foreign Exchange Management Act, while noting that the Volcker report on UN's Oil-for-Food Programme has mentioned RPL as the 'non-contractual beneficiaries' in three oil contracts allocated by Iraq's State Oil Marketing Organisation.
"In order to obtain confirmation to this effect, as also to obtain supporting documents," ED said, it proposes to approach the authorities in Iraq, Jordan and Lebanon.
Asked about the development, a Reliance Industries group spokesperson said: "We have not violated any rules and regulations laid down by RBI or FEMA."
As per the Volcker report, under these three contracts, 19 milion barrels of oil were allocated, out of which 15.78 million barrels were lifted and surcharged amount totaling over $3.5 million over and above the price of oil fixed by the UN was paid into a designated Iraqi account.
ED's probe into the matter based on the Volcker report found that RPL, a subsidiary of India's most valued entity Reliance Industries, did not lift the oil allocated to it by SOMO of Iraq, but authorised Liechtenstein-based Alcon Petroleum to do so on its behalf.
Consequently, Alcon signed the contracts with SOMO and lifted the oil.
Reliance Group, however, said it had no relationship with the Alcon Petroleum.
"Reliance Industries Ltd has always followed national and international laws and norms in all its business transactions. . . We have not been approached by any government authority in the last two and half years regarding this issue," said a spokesperson for RIL.