New Delhi: Mounting attack on Reliance Group Chairman Mukesh Ambani on 'ownership issues', Anil Ambani's camp today (Nov 28, 2004) claimed that the elder brother had told his mother Kokilaben and sisters (Dipti and Neena) to keep out of the controversial RIL (Reliance Industries) board meeting of July 27, which conferred superior rights to the CMD.

Spotlight: Battle of Ambanis

Reliance Industry sources, however, debunked the claims saying these were "baseless, there is no truth in these."

Referring to the letter Anil Ambani, Vice Chairman and Managing Director of RIL, had written to the company CMD on October 25, sources close to him said Mukesh Ambani's basic attitude was not to discuss anything and presenting others with fait accompli.

After realising that his nine protest e-mails and discussions with six independent RIL directors had no effect, "Anil spoke to his mother several times, who in turn spoke to Mukesh. But Mukesh told his mother to stay out of it. It does not concern her," Anil's camp said.

While no contact could be made with the Ambani brothers, mother Kokilaben, sources close to Anil claimed that not only Mukesh did not listen to his sisters but also did not allow any discussion on Anil's views by some of the directors at the RIL board meeting on October 25.

Alleging that Mukesh had tried to rush through the minutes, sources close to Anil said the CMD turned down a suggestion from an independent director for reconsideration of the contentious resolution that redefined powers of Chairman and Managing Director, Vice Chairman and Managing Director and executive Directors.

At the end of the board meeting on October 25, draft minutes had been kept ready and all independent directors signed these but Anil Ambani did not get the minutes till mid-November.

RIL sources from Mumbai dismissed all the charges levelled by Anil's camp and said, "The entire issue was discussed by the board members. At the end of the discussion, Mukesh Ambani said that as desired by the members we will take a note of the letter."

In his letter that was taken on note by the RIL board in its meeting on October 25, Anil Ambani had said, "I have also been legally advised that the proposed redefinition of powers of the Managing Directors is not in accordance with Law, and is in conflict with the provisions of the Companies Act, 1956, the Memorandum and Articles of Association of our company and the agreements approved by the Shareholders for appointment of the managing directors."

Demanding that the resolution passed in the previous board meeting on redefinition of powers, Anil had said, "The minutes incorrectly state that after discussions all directors (other than the CMD who did not participate) unanimously approved of the resolution.

"The fact is that there were no discussions, and there was no vote, and the question of the resolution being passed unanimously thus does not arise," Anil said in his letter.