The Reliance Group Saga - Break-up of the Largest Family-owned Business in India

In order to have a firm control over the Reliance group companies, Dhirubhai had floated several investment companies which according to media reports varied between 400 and 1400. At the time of his death, Dhirubhai had not left any will. According to industry experts, 29% of shares of RIL were held by a web of investment companies known as 'persons acting in concert.' Experts believed that this made division of his huge business empire difficult and Dhirubhai purposely avoided writing a will. Reliance claimed that there was no connection between these investment companies and the Ambani family. During investigations about switching of shares during the 1990s, Reliance repeatedly claimed before the capital market regulator, department of company affairs and income tax department that it had no connection with these investment companies...

In a board meeting on July 27, 2004, Mukesh had put forward a proposal to redefine powers of Chairman, managing directors, executive directors and various other committees of directors. The resolution gave Mukesh authority to "vary or evoke all or any duties, responsibilities or powers given to the managing director - Anil, and to confirm, modify or countermand any actions or decisions made by him." This resolution was accepted by other directors of RIL board. Anil did not agree to this as the matter was not discussed with him. He wrote to Mukesh that he was "legally advised that the proposal redefinition of powers of the managing directors is not in accordance with law..."