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Home  » Business » New controversy hits Ambanis

New controversy hits Ambanis

Source: PTI
April 25, 2005 18:37 IST
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In a yet another controversy involving the Ambani brothers, a group company Reliance Capital on Monday passed its financial accounts with one of the directors, an aide of Anil, protesting against sale of its holdings in the petrochemical venture.

"The Board of Directors passed the accounts, noting the dissent of one of the directors, Amitabh Jhunjhunwala, made only with respect to divestment of the entire holding of 50 per cent in Reliance Petroinvestments, which holds 46 per cent equity shares in group's petrochemical company IPCL," the company said in a communication to the stock exchanges.

It was, however, not clear for what consideration and to whom Reliance Capital sold the holding in Reliance Petroinvestments Ltd.

The Reliance 'ownership issue'

Ironically, Anand Jain is a vice chairman in Reliance Capital, whom Anil had alleged of conspiring to divide the Ambani family and raised various issues concerning corporate governance and Jain's business dealing with the family.

Reliance Capital announced a net profit of Rs 105.8 crore (Rs 1.06 billion) during 2004-05 compared to an almost similar amount in the previous financial year.

This comes at a time when there are indications of a settlement being reached between the two warring brothers over the ownership of over Rs 90,000 crore (Rs 900 billion) Reliance empire.

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