'Rs 1000 cr loss in IPCL stake sale'

Hardening their stance against Reliance group chairman Mukesh Ambani, younger brother Anil's camp on Tuesday alleged that sale of equity in IPCL by another group company Reliance Capital caused a loss of Rs 1,000 crore (Rs 10 billion) in breach of "fiduciary" responsibility towards minority investors.

Reliance Capital director Amitabha Jhunjhunwala, a close aide of Anil, who is fighting a bitter battle with Mukesh over control of Reliance empire, said in a statement, "The loss of fair value for Reliance Capital on this account is in the tune of Rs 1,000 crore.

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

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