Monday, 30th October 2017

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Anil gives up Reliance Communications berth

Last month, Anil announced that Reliance Capital will exit the lending business by December

  • Published 17.11.19, 12:14 AM
  • Updated 17.11.19, 6:09 AM
  • 2 mins read
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Anil Ambani Telegraph file picture

Anil Ambani has resigned as director of Reliance Communications (R-Com), the troubled telecom firm which came under his control following the split of the Reliance empire in 2005.

In an announcement to the bourses on Saturday, the firm said that Ambani along with Chhaya Virani, Ryna Karani, Manjari Kacker and Suresh Rangachar have resigned as directors.

“Your good office may also note that Manikantan V has also tendered his resignation as a director and chief financial officer of the company earlier. The aforementioned resignations shall be put up to the committee of creditors of the company for their consideration,” the filing added.

Announcement of the resignation comes only a day after the firm reported a consolidated loss of Rs 30,142 crore for the September quarter compared with a loss of Rs 366 crore in the preceding three months.

This came after the firm provided for estimated liabilities aggregating Rs 28,314 crore following the Supreme Court judgment on adjusted gross revenues (AGR).

R-Com had said that this includes Rs 23,327 crore towards licence fee and Rs 4,987 crore towards spectrum use charges.

On Friday, the Ruias had lost control over Essar Steel after the apex court upheld the validity of a Rs 42,201-crore offer made by ArcelorMittal.

R-Com is currently going through an insolvency process and apart from its affairs, business and assets, the powers of the board of directors are vested in the resolution professional (RP), Anish Nanavaty.

In September, the resolution professional had chaired and addressed shareholders of R-Com at its annual general meeting (AGM).

The younger scion had got control of R-Com following the split of the Reliance empire in 2005, apart from other businesses such as power generation and financial services.

Though the company did well initially, cut throat competition in the segment and heavy debts saw R-Com falling into difficult times.

In 2010, a non-compete clause was scrapped between the two groups that paved the way for elder brother Mukesh Ambani to enter telecom. The subsequent entry of Reliance Jio and its cheap tariffs further worsened conditions for R-Com.

While R-Com had laid out a plan to sell assets for about Rs 25,000 crore but failed and subsequently opted for insolvency proceedings in February this year.

Recently the committee of creditors of R-Com had extended the deadline to submit bids for assets of the firm by 10 days.

While Bharti Airtel, Bharti Infratel and a private equity firm were understood to have submitted their bids, reports indicate that Bharti Airtel has withdrawn its offer.

Last month, Anil Ambani had announced that Reliance Capital will exit the lending business by December.

The firm had also sold the asset management business to Nippon Life of Japan.