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IPCL confirms, Anil not on board
April 23, 2005 19:28 IST
Reliance group's petrochemical company, IPCL, appeared to be tying itself in knots on Saturday over the resignation of Anil Ambani from its board, with its answers raising more questions.
IPCL informed the Stock Exchanges on Saturday that Anil's resignation had been considered by the board on January 20 and that "he ceases to be on the board of the company". IPCL sent this communication by way of clarification of its earlier letter dated January 20 on the subject.
Engaged in a tussle with his elder brother and group Chairman Mukesh Ambani for the control of the Reliance empire, Anil had resigned as vice-chairman and director from IPCL board on January 3 after attacking a fellow board member Anand Jain, who is close to Mukesh Ambani.
The fate of the resignation was unknown till it was discovered on Friday that Anil's name had been deleted from the company's website.
IPCL maintained on Friday that two letters pertaining to his resignation had been "noted" by the company's board in two successive meetings on January 20 and March 30. It refused to say anything on the fate of the resignation letter i.e. whether it had been accepted or rejected.
After media disclosures that Anil's name had been deleted from the list of Board members, the Bombay Stock Exchange and National Stock Exchange had asked IPCL on Friday night to clarify the status of the younger Ambani.
Ironically, in its letter of January 20, IPCL had written to the stock exchanges that Anil's resignation had been considered by the board that day and it had been decided that he should reconsider it.
This has raised questions as to when the resignation was accepted. After the January 20 board meeting, the stock exchanges were informed by IPCL that Anil had been requested to reconsider.
IPCL's written statement on Friday that the resignation related letters of Anil dated January 3 and January 27 had been considered by the board in its meetings on January 20 and March 30, indicates that the fate of the resignation letter was not decided at least till March 30.
Stock market sources pointed out that if the resignation was accepted on January 20, why didn't IPCL follow the rules and inform the BSE and NSE before doing so on Saturday.
If he ceased to be member from January 20, why was Anil's letter of January 27 on the same issue considered by the board on March 30, they asked.
If the resignation was accepted on March 30, why were the stock exchanges informed only on Saturday by way of a clarification to an IPCL letter of January 20, the sources asked.
No answers were forthcoming from the spokesperson of IPCL, headed by Mukesh, or group's flagship company Reliance Industries who repeatedly maintained they would get back with their stand.
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