Ambani brothers in the ring again
Anil has alleged that the companies he was mandated to get from the division continue to be ruled by Mukesh.india Updated: Feb 06, 2006 01:03 IST
Anil Dhirubhai Ambani group on Sunday said Reliance Industries Limited has not completed the transfer of the four Anil Dhirubhai Ambani Group companies.
"Nearly eight months have now passed after announcement of proposed overall reorganisation... Unfortunately, despite the lapse of this inordinately long period of time, Shri Mukesh Ambani and Reliance Industries Ltd have not completed any of the major activities required to implement the overall settlement in letter and in spirit," ADAG Director, Satish Seth said.
Seth, who did not take any question while reading the statement on behalf of Anil Dhirubhai Ambani Group, said "despite formal documentations being agreed and exchanged between the parties, a deliberate and criminal attempt was made on Saturday to frustrate and prevent the transfer of such shareholdings of Reliance-ADAG at a mutually agreed time."
Referring to the agreement reached between the two brothers with the approval of Kokilaben, Seth said, "Unfortunately, despite the lapse of this inordinately long period of time, Mukesh Ambani and Reliance Industries Ltd have not completed any of the major activities required to implement the overall settlement."
The statement came within hours of Mukesh's top executive Sandip Tondon, Chairman of the four new companies carved out of RIL for transfer to ADAG, stating that Reliance Industries had completed the mammoth exercise of allotment of shares of four new companies and once the listing of the same was done, these would be handed over to Anil Ambani.
As per the scheme of arrangement approved by the Mumbai High Court, RIL had to enter into several agreements with the Reliance-ADAG companies on gas supply, non-compete and brand agreements, Seth said adding "these agreements have shockingly been executed while the four Reliance ADAG companies are still under RIL control."
Accusing RIL of "acting against the interest of 22 lakh Reliance shareholders and to their detriment", he said, "The course of action so adopted by RIL is a mockery of all fundamental principles of propriety, conflict of interest, transparency, fairness and corporate governance."
The renewed battle between the two brothers came into public ON Saturday with Anil's camp attacking elder brother of "major deviations" in gas supply agreement reached between RIL and Reliance Natural Resources Ltd (RNRL) following reports that the agreement on gas supply had been reached between Mukesh and Anil's companies.
Seth said the four companies -- RNRL, Reliance Energy Ventures Ltd, Reliance Communications Ltd and Reliance Capital Ventures Ltd -- had not yet been transferred and "RIL's stance in delaying the listing of all four companies has resulted in incorrect, incomplete and misleading information being communicated to the BSE and NSE."
Seth said "RIL's view that the submission of all information and details, and the entire listing process of these four companies must be completed under RIL's control, reflect an unreal reluctance to recognise the reality that these companies now belong to Reliance-ADAG."