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Home > Business > Business Headline > Report


Ambani row: Mother may not mediate

Agencies | November 25, 2004 17:01 IST
Last Updated: November 25, 2004 17:29 IST


Kokilaben Ambani, mother of Reliance chairman Mukesh and vice-chairman Anil Ambani, is said to have refused to intervene in the 'ownership issue' seething within the Reliance group of industries.

Reliance founder Dhirubhai Ambani's widow has decided not to mediate in the issue, saying that she does not know enough about the family business. Sources, however, say that she does not want Anil Ambani to be left out of the family business.

Politicians, family members and well-wishers have been working towards settling the 'differences' between the brothers, but the efforts seem to have failed till date.

In the wake of a studied silence on the part of Anil Ambani, vice chairman of RIL, over the issue, the markets have turned jittery.

Also the absence of a joint statement by the two brothers clarifying that there was no problem between them has kept investors on tenterhooks.

While investors await some positive development on the issue, reports said that the two siblings are believed to be consulting their legal experts.

Meanwhile, M L Bhakta, who has agreed to reconsider his resignation from the Reliance Industries Ltd board, is reported to have said that he was working towards resolving the 'misunderstanding' between Mukesh and Anil Ambani.

In another significant development, six directors of Reliance Energy resigned from the board, leading to a drop in Reliance shares and the overall market sentiment

The directors who quit the REL board are S C Gupta, (director operations), Prof Ramachandran, Amitabh Jhunjhunwala, K H Mankad from Reliance Energy, Satish Seth and J P Chalssani.

Sources close to the family, however, say that despite the differences between them, Mukesh Ambani does not plan to push Anil out of the RIL board.

Earlier, Reliance Industries Chairman and Managing Director Mukesh Ambani had said he is the 'final authority' on all matters concerning the company.

"There is no ambiguity in his (late father Dhirubhai Ambani) legacy, and the chairman and managing director is the final authority on all matters concerning Reliance," he said in an e-mail message to over 80,000 employees of the group.

"Our founder-chairman late Dhirubhai Ambani had taken all necessary steps to separate ownership from management and had settled all issues during his lifetime," he said in the message.



AGENCIES

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Number of User Comments: 5




Sub: She Should settle the matter in house!

I guess she is the only one who can settle this matter in house, else it is going to reach the court very soon.


Posted by Piyush





Sub: Ambani Split!

Its just unbelievable that the Ambanis are outpouring their differences in public. I am sure that this would let every Tom Dick And Harry to ...


Posted by GratiaEdwin





Sub: Kokilaben Ambani not to mediate.

It is good that Kokilaben has withdrawn herself. Now it is Mukesh's turn to show the universe that really he has big mind and big ...


Posted by P.J.LAKHAPATE





Sub: Ambani Row

Dear Mukesh, Your father has setteled all the issues related to ownership of RIL during his life time. This may be true but you should ...


Posted by Rajesh





Sub: Ambani row

What Mukesh and Anil doesnt realise is that their actions will have a profound impact on the stability of Private sector where a huge company ...


Posted by Anonymous




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