`Reliance Cap lost Rs 1,000cr in IPCL stake sale'

Hardening their stance against Reliance group chairman Mukesh Ambani, younger brother Anil Ambani's camp today alleged that the sale of equity of IPCL by Reliance Capital caused a loss of Rs 1,000 crore in breach of "fiduciary" responsibility towards minority investors.

Amitabh Jhunjhunwala, a close aide of Anil Ambani, said in a statement: "The loss of fair value for Reliance Capital on this account is to the tune of Rs 1,000 crore."

"The sale of Reliance Capital's stretagic stake in IPCL at par value is indefensible," Jhunjhunwala, who objected to the transaction at the company's board meeting yesterday before dissenting on passage of annual accounts, said from Mumbai.

Commenting on the deal, executed in the last quarter of 2004-05 presumably without prior approval of the board, Jhunjhunwala said: "Related party transaction is in breach of fudiciary responsibility towards Reliance Capital's minority investors."