Ambani v/s Ambani: squabbling siblings again kick up a storm
06 February 2006
Barely eight months from the announcement of a formal break-up of the Reliance empire, the Ambani brothers have started a fresh round of fighting. Though many allegations are being raised against each other, the real bone of contention may lie elsewhere — hidden from the public eye.
Just when the minority shareholders of Reliance Industries were waiting for the listing of new entities belonging to the Anil Ambani group, re-branded as Reliance ADAG from the earlier ADAE, a fresh war of allegations and counter-allegations have broken out between the rival camps of the country's most famous squabbling siblings. The shares of the new companies are reportedly being quoted at attractive rates in the grey market and shareholders are bound to be disappointed about the delay in listing.
Though a settlement was announced by the middle of last year, splitting the group between the two brothers, somehow it always appeared to be a forced truce with neither side completely happy with the terms of the division. However, both sides gave the impression that they were moving away from the past with announcements of significant initiatives for their respective businesses.
Then, suddenly, they have made their acrimony public all over again. Allegations and counter-allegations are flying thick and fast. Both the main players remain in the background as the side acts take the stage, keeping the media on its toes.
For the love of gas
The latest round of bickering between the brothers started when JP Chalasani, Anil Ambani's nominee on the board of Reliance Natural Resources (RNRL), publicly alleged that the agreement executed by Reliance Industries Limited (RIL) with RNRL was not according to the terms of settlement between the two groups.
He further stated that the agreement would be 'suitably amended' once the control of RNRL was transferred to the Anil Ambani Group. However, he did not clarify how the agreement would be amended if RIL did not budge from its position.