Mumbai: The genesis of the rift in the Reliance Group lies in a board meeting on July 27 last which redefined the powers and authority of Mukesh Ambani, the RIL (Reliance Industries Ltd) Chairman and Managing Director, and his younger brother Anil Ambani, the Vice Chairman and Managing Director, informed sources said today (Nov 25, 2004).

Taking exception to the minutes of the meeting pertaining to redefinition of their respective powers, Anil is believed to have shot off nine communications to his elder brother and to concerned department within three days of the meeting, questioning the minutes.

Anil is understood to have questioned the minutes, saying these incorrectly said that after discussions all directors approved the resolution placed at item no. 17 (relating to powers), introduced through a supplementary agenda at the end of the last board meeting without proper and due notice.

"The fact is that there were no discussions and there was no vote and the question of resolution being passed unanimously thus does not arise," Anil is understood to have said in one of his communications to RIL Chairman.

He is also believed to have taken legal opinion on the issue and said that he had been advised that the proposed redefinition of powers of the managing directors was not in accordance with law.

It also was in conflict with the provisions of the Companies' Act, Memorandum and Article of Association of RIL and Agreement approved by shareholders for appointment of MDs.