Reliance board reposes faith in Mukesh

Rallying solidly behind chairman Mukesh Ambani, the board of directors of Reliance Industries (RIL) today reposed full faith in him in the midst of his battle with younger brother Anil, saying the "present organically integrate structure of the company should not be changed."

The board "reiterated its full faith and confidence in the leadership of the chairman and managing director Mukesh Ambani to continue to lead it in a challenging global environment," the company said in a statement after the board meeting.

The board, at the same time, also recorded its "deep appreciation" of the tireless efforts of the entire management team including vice-chairman and managing director Anil Ambani," the statement added.

Reaffirming RIL's investments in Reliance Communications Infrastructure (RCIL) and Reliance Infocomm, the board said the investments were made for value creation for shareholders.

On Anil's allegations that there was infringement of disclosure norms on issue of sweat equity to Mukesh, the board said there was no infringement of any laws or regulations in the matter of RCIL giving the elder brother an option to acquire 50 crore shares of the company and exercise the option.

On issues raised by Reliance Energy (REL), the board said RIL had already sent a reply to the energy company's communication on December 4, 2004, and the reply to its letter on December 23 would be sent in accordance with decision taken at the meeting today.

"Reasonable assistance would be extended to REL in several respects as desired by the energy company without affecting RIL's operations and projects," it said.