Anil Ambani quits IPCL board

Our Corporate Bureau
04 January 2005

Mumbai: Anil Ambani''s stormy resignation as vice-chairman and director from Indian Petrochemicals Corporation Ltd (IPCL) board yesterday has not caused any ripples in the stock markets.

• IPCL closed 5.16 per cent higher at Rs191.70, up Rs9.40, on the BSE.
• Reliance Industries closed at Rs543.10, up Rs9.30, or 1.74 per cent.
• Reliance Capital closed at Rs140.50, up Rs8.75, or 6.64 per cent.
• Reliance Energy closed at Rs561.85, up Rs37.45, or 7.14 per cent.

Reliance group sources said Anil Ambani had blamed fellow IPCL drector, Anand Jain, considered a childhood friend and close confidante of Mukesh Ambani, for the rift between the two brothers. He has complained that Jain was running a vilification campaign against him, they said.

Anand Jain''s official dealings with Reliance Industries Ltd, the group sources said, had adversely impacted the business image and reputation of IPCL. Jain was creating a divide between the Ambanis and aggravating differences.

In view of all this, Anil Ambani is said to have written in his resignation letter that he considered it beneath his dignity, self-respect and self-esteem to be on the same board with Jain.

Anand Jain, who is also on the board of Reliance Capital Asset Management Ltd, declined to comment on the matter.

Anil Ambani, who is vice-chairman and managing director of group flagship Reliance Industries, first became an IPCL director in August 2002 when the group bought 26 per cent equity in the country''s second largest polymer maker from the government. He was appointed vice-chairman in April this year.