It has been reported by CPM that MPs have written a letter to Prime Minister Manmohan Singh to conduct an enquiry into the complaint of the higher capital expenditure made by RIL for D6 KG Basin and its hasty approval by the authority concerned.

Annoyed over the hasty decision by the government for allowing RIL to endure high expenditures, CPM said that the government's involvement with RIL will have a direct impact on the layman as it is understood that in order to cover it expenses RIL will be increasing its rates of oil and gases.

In the letter written to PM, it has been highlighted that former Director General of Hydrocarbons, V K Sibal, permitted Reliance to pump up its "development costs" on the gas extraction in the D6 block of KG basin from $2.47 billion to $8.84 billion. The MPs in the letter said, "This money taken by RIL affected the revenues of the government”.

Following the controversy, RIL shares have fallen by 1% in the morning. However, the company has denied the allegation saying that it has not done anything wrong. A media report has revealed that HSBC has downgraded RIL to "neutral" from "overweight" and has cut the price target to Rs 1,040 from Rs 1,084.