4 REL directors withdraw resignation

The Reliance Energy Ltd board has accepted the resignations of Amitabh Jhunjhunwala, Treasurer of Reliance Industries, and Prof J. Ramachandran, an independent director of the REL board, while four other directors who quit the REL board have withdrawn their resignation.

The REL board also expressed its full faith in the leadership of Anil Ambani as the chairman and managing director of the company.

Amitabh Jhunjhunwala had resigned as Treasurer of RIL earlier and since he is a nominee of Reliance Power Ventures Ltd, a 100 pre cent subsidiary of RIL, on the REL board, his resignation was accepted.

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In a communication to the Bonmbay Stock Exchange, REL said that the resignation of Prof J. Ramachandran was also accepted as he re-stated his earlier position: 'Given the recent developments, and some comments regarding my independence, I thought it best to resign as director for highest standards of corporate governance require not independence just in terms of fact, but even more importantly, independence in terms of perception.'

However, RIL re-affirmed its confidence in the REL board and the four wholetime directors on the REL board who had earlier quit even as the battle between the Ambani brothers intensified.

The four directors -- Satish Seth, executive vice chairman, J P, Chalasani, director (business development), S C Gupta, director (operations), and K H Mankad, director (finance) – were asked to continue on the REL board.

The REL board also re-affirmed its faith and confidence in the leadership of Anil D Ambani, chairman and managing director, REL, and the 4 directors, following which the foursome withdrew their resignations.

In a communication to the BSE, REL quoted the four directors as saying, "Since the RIL and REL boards have expressed their full confidence in our professionalism, it will be our privilege to serve the shareholders and all other stakeholders of REL under the dynamic leadership of Anil D Ambani, Chairman and Managing Director, REL, and contribute to the tremendous growth prospects of the company."

Reliance Energy Ltd held its meeting in Mumbai on Wednesday to consider the financial performance for the third quarter ended December 31, 2004.