Reliance

Mukesh Ambani lost a bundle last time. This time he could do so again.

If you guys remember, Mukesh lost a bundle when he got into a tiff with his brother Anil Ambani last time. He lost nearly Rs. 7000 crores in sweat equity which he would have received had Anil not blown off the lid on the sweat equity scam. Some of Mukesh’s freinds also lost money and I am not talking about small change here. I believe Mukesh will lose money or some advantage again as Anil is slowly and steadly revealing information which will have adverse effects on Mukesh’s business. We have already seen that the government is reviewing the terms and conditions based on which they will enter all future oil and gas contracts. They intend to ensure that they have the final decision on pricing and distribution of national assets like oil and natural gas reserves. I think the way things are going, the capex of over $8 billion dollars approved for Reliance by the government may also be reviewed or may come under scanner.

Take Anil Ambani seriously

Anil Ambani’s AGM speech is front page news in all the newspapers. If you remember, during the time that Anil Ambani was fighting with Mukesh to get his rightful share, he had revealed some misdeeds of Mukesh. For instance, with an investment of just Rs. 50 crores, Mukesh was going to gain Rs. 7-8000 crores in Reliance Telecom. Woth practically all the investment of Reliance shareholders, Mukesh was taking a major share of Reliance Telecom as sweat equity. He ultimately reversed the deal. Similarly, some of his friends were also going to benefit from Reliance Telecom. Later everything was reversed.