The back-to-back annual general meetings (AGM) of five Reliance Group firms has put its chairman Anil Ambani in a difficult situation as a set of shareholders threaten to file class action suit against Anil Ambani for eroding shareholders wealth under his watch while another set of shareholders gave standing ovation to Reliance Group chairman to express their solidarity with him amidst difficult times.
One investor Praveen Rai with investments of over ₹3 crore in Reliance Group companies during Reliance Power AGM asked Mr. Ambani. “ My heart is bleeding as I have lost over 90% of my investments. Your net worth has eroded from ₹3.5 lakh crore to ₹3000 crore now. Why have pledged almost your entire stake in all group companies? When does a promoter does this? Our company has defaulted on payment of ₹63 lakh in spite of having ₹15,000 crore in its reserves why? Why are we paying interest of 13.9% when we have ₹15,000 crore in our reserves? I could have paid ₹63 lakh to save my company. When you get a defaulter tag, you are only left with hand to mouth.”
Interestingly, Mr. Rai had sold Reliance Industries (RIL) shares in 2005 to buys shares of Anil Ambani Group firms, when the warring Ambani brothers divided the Reliance empire. “I have lost 90% of my investments in Reliance Group shares. I am planning to file class action suit against Anil Ambani and Reliance Group board members if they don’t act in the next three months. Anil Ambani had filed defamation suit against Rahul Gandhi over Rafale deal, why did he withdrew it? It means something is wrong with him,” Mr. Rai told The Hindu .
Sobhana Mehta, a Reliance Infra shareholder said, “I thought you will reward us with bonuses and dividends when I heard Rahul baba (Rahul Gandhi) said that government has given you Rs 30,000 crore. But his comments should be taken lightly given that he has machine which converts potato into gold. We shareholders and employees are with you.”
A share holder pointed that Mr. Ambani has not fled like others in spite of having home in Switzerland and is trying his best to repay his dues and turn around the company to which Mr. Ambani clarified that he don't have house in Switzerland nor intend to have in future.
“You are doing Modi... Modi in your AGM speech but Modiji has finished your company. Why are you not getting the arbitration money even after FM Nirmala Sitharaman said that government will release ₹20,000 crore?,” Mr. Rai asked Mr. Ambani.
In response to shareholders query, Mr. Ambani said, “We have received lost of suggestion from the shareholders. We will look at issues that have been raised and try to address those concerns.”
