Brothers in the ring again
THE ESTRANGED Ambani brothers are at war again. This time Anil Ambani is alleging that the companies he was mandated to get from the division of the Ambani empire continue to be ruled by elder brother Mukesh Ambani. He hasn?t really got them yet.india Updated: Feb 06, 2006 14:12 IST
THE ESTRANGED Ambani brothers are at war again. This time Anil Ambani is alleging that the companies he was mandated to get from the division of the Ambani empire continue to be ruled by elder brother Mukesh Ambani. He hasn’t really got them yet.
In a statement issued on Sunday, Anil's company -- Anil Dhirubhai Ambani Group (ADAG) -- said it had been eight months since the official division of the group but Mukesh and his company, RIL, had not yet completed any of the major activities required to implement the overall settlement. Neither the companies nor the shares have been transferred to Anil yet.
ADAG specially mentions an agreement to supply gas by Mukesh-owned RIL to Anil-owned Reliance Natural Resource Ltd (RNRL). This deal was signed by two RNRL directors nominated to the board by RIL. Anil's man on the board has protested. In effect, Anil has had no say in determining a deal affecting his own company.
When contacted, RIL officials told HT, "The entire process of demerger has various components and the transfer of control, new board of directors, listing of the companies are part of that. Which violation are we being accused of? They've dissented and we've noted it. Where is the deviation from the process till now?"
At the heart of the matter is the fact that RIL has not yet withdrawn its nominees from the four resulting companies formed under the demerger scheme. The majority of the directors in these companies are those nominated by Mukesh or his companies.
It is being said that these agreements should have been signed after Mukesh or RIL had withdrawn its nominees from these four companies and transferred the management to Anil's group.