Mumbai/Bengaluru, May 1 -- Reliance Industries Ltd's recent sale of a second-level step-down subsidiary to a little-known company may test the limits of regulation on related-party transactions even while technically keeping to the rules, said legal and governance experts.

On 13 April, Reliance Retail Ltd sold its subsidiary, Reliance Projects & Property Management Services Ltd (RPPMSL), to Jaipur Enclave Pvt. Ltd for Rs. Rs.274 crore, according to a stock exchange filing.

The sale consideration is small compared to the scale of the sold unit. RPPMSL, set up in 2019, reported Rs.379 crore in profit on Rs.9,323 crore revenue in the year ended March 2025, according to the company's financials. Purchaser Jaipur Enclave had zero revenues an...