InvestorQ : How did "Bhai" factor saved Anil Ambani?
Deepa Salunkhe made post

How did "Bhai" factor saved Anil Ambani?

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Crowny Pinto answered.
1 year ago

Again the Ambani's legacy got a milestone in the calendar of its business history. This Monday on 18th March billionaire Anil Ambani warded off a possible jail term. By clearing all the dues of a Swedish service provider, Ericsson, RCom (Reliance Communications) is relieved now. Debt-laden RCom had pending dues up to Rs. 550 crore, which included interest.The 18- month long battle of due payment was cleared to the Ericsson. It was in just a day before the expiry of the deadline set by the Supreme Court.

Ericsson had signed a deal in the year 2013 with RCom for the entire management and operation of the telco’s nationwide network. Due to default in the payment, Ericsson filed three contempt petitions against Anil Ambani.

Making a notable intervention, all the due money was arranged by Anil's elder brother Mukesh Ambani, chairman of Reliance Industries Ltd, and his wife Nita Ambani. Anil thanked for "timely support". Further, Anil said that he and his entire family "are grateful" and "deeply touched with this gesture" that they "have moved beyond the past".

Well, this is not the first time that Ambani brothers have come into the news in regards to money rescue. Earlier Mukesh Ambani showed up during the famous feud among brothers that concluded the Reliance Group to split up into two.
On 18th March, RCom close at Rs.4 on the BSE. It dipped to 9.3 percent.

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1 year ago

This is India; and as for Indians have done for ages along, family comes first.

Prio to Reliance Industries launching Jio, the group and Reliance ADAG have not been on a direct competitive ground. The launch of Jio also has nothing to do with the fall of Reliance Communications. So lets be realistic to say that even if the two brother were not the happiest in business together, they have any bitter in life outside of business as a family.

As for the bhaaai factor, is a business dispute so large that one can choose to see his brother in jail over a bad business debt? I think if you see this in Indian perspective, it should not be surprising to see a brother help out another one in times of need, keeping all other feuds aside.