In '95, a snap scrutiny by RBI's department of financial companies found that Reliance Industries Ltd (RIL), Reliance Petroleum Ltd (RPL), Reliance Industrial Infrastructure Ltd (RIIL) and Reliance Filaments Ltd (RFL) were "diverting the funds obtained from banks, public issues/right issues, including Euro-issues if any, to...satellite companies, perhaps with a view to boosting up of their own share prices." The RBI listed 215 little-known satellite companies, many of them investment firms controlled by the Ambanis, and analysed seven of them. The report concluded: "In view of the above, insider trading in the shares of RIL and other group companies could not be ruled out. We may advise the fact to the sebi and other appropriate authorities for information and necessary action."
The income tax (IT) department investigated these allegations and the money flows to some of the satellite firms listed by the RBI. So did the department of company affairs (DCA), once the Rajya Sabha MP Rashid Alvi went public in '01 with evidence collected by Mumbai's IT department. But no action was taken against the Ambanis or any of their firms.