Directors' claim and Mukesh's action breach of trust: ADAG | business | Hindustan Times
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Directors' claim and Mukesh's action breach of trust: ADAG

Anil Ambani Group has alleged that RIL directors' claims of not having approved the Ambani family MoU and actions of their Chairman Mukesh Ambani, who signed the pact, were in breach of criminal trust and fiduciary duties.

business Updated: Oct 11, 2009 11:53 IST

Anil Ambani Group has alleged that RIL directors' claims of not having approved the Ambani family MoU and actions of their Chairman Mukesh Ambani, who signed the pact, were in breach of criminal trust and fiduciary duties.

Fighting a legal battle on supply of gas, Anil Ambani group firm RNRL even questioned the locus standi of directors of Reliance Industries to file individual affidavit saying they were not parties to the case and had not taken permission of the court to file the same.

"If the MoU was not known, it is not understood as to how the corporate governance committee (to which the directors were members) worked out the basis and details of demerger, which were entirely based on the MoU," Anil Ambani Group firm RNRL said in rejoinder to the affidavits filed on Saturday.

Six directors on the board of RIL had on October 6 filed separate affidavits in the Supreme Court saying the board had not "accepted and approved the contents of the memorandum of understanding (between Mukesh and Anil Ambani) dated June 18, 2005" that provides for division of natural gas from KG-D6 between firms run by the two brothers.

If the statements made by the directors in affidavits to the Supreme Court were true then "the actions of Mukesh Ambani on one hand and the directors and members of the Corporate Governance Committee on the other would clearly amount to breach of fiduciary duties and criminal breach of trust," RNRL said in its rejoinder.