<div><em>For those following the Ambani saga, the anniversary of the Mukesh-Anil split reminds us of a lot of things about allegations of crony capitalism in the country, says <strong>Sutanu Guru</strong></em><br><br><br>Ten years ago on this day, almost everyone who was someone in India Inc, a large number of politicians and lobbyists and virtually all business journalists, were waiting with bated breath. Some because their futures with linked with what was unfolding; most out of curiosity and even sophisticated voyeurism. Perhaps only five people were privy to the nitty gritty of the unfolding drama: then chairman of ICICI Bank K. V Kamath, then chairman of J. M Financial Nimesh Kampani, Kokilaben Ambani and her two warring sons Mukesh and Anil. Finally, after weeks and months of recriminations and behind the scene negotiations, the two brothers Mukesh and Anil agreed to carve out the corporate empire carved out by their late father Dhirubhai Ambani and go their separate ways. </div><div> </div><div>Business families and corporate empires had split before June 18, 2005. For instance the Birlas, Singhanias, Goenkas, Podars, Jindals and many more. But no split had attracted the kind of attention that this one did. And not just because the Ambanis have always been both larger than life and controversial, but also because the decisions taken by the estranged brothers had repercussions on important verticals and industries like Oil & Gas, petrochemicals, infrastructure, power, telecom and financial services. The fact is: even after they split, the repercussions have been felt for a long, long time.</div><div> </div><div>On the face of it, the split was clear cut. The elder brother Mukesh retained control of the core business of oil, gas, petroleum and petrochemicals built by Dhirubhai Ambani while the younger brother Anil got hold of the relatively new companies that were involved in telecom, power and financial services. The two brothers also signed a non compete agreement of five years. They even agreed to split the services of their legendary or notorious lobbyists. Most of the older guns of Reliance Industries Ltd who had worked with Dhirubhai stuck on with Mukesh. Some opted for a new world of corporate adventurism and expansion that Anil promised. Both started the race to build bigger and better empires than the one their father had created. So one day of the week, elder brother Mukesh would fly in a private jet to Delhi to meet the movers and shakers in Delhi's power corridors while the younger brother Anil would repeat the exercise another day of the week. </div><div> </div><div>But the it really wasn't a case of all is well and they lived happily and separately thereafter. The bickering continued. One classic example that had repercussions for India as a whole had to do with gas. During the split, the brothers had agreed that Mukesh would supply from the KG basin fields that he controlled to the power projects being planned by Anil at a moderate price of $ 2.12 per mbtu. This was crucial for Anil generating huge profits from his proposed power plants. But that never happened and the brothers fought a pitched battle in courts. The matter reached the Supreme Court and its verdict has actually bad news for both the brothers. Anil never got cheap gas and Mukesh has faced a barrage of continuous allegations about gold plating and demanding unreasonably high prices from gas customers. The controversies around the KG basin gas have never died down and have definitely affected the image of Mukesh Ambani. </div><div> </div><div>If Mukesh faced heat over gas, younger brother Anil seemed to get mired in the 2 G scam that rocked the nation during the second term of the UPA regime. There were serious charges of wrong doing and the sensational disclosure of the so called Radia tapes seemed to suggest that even Mukesh Ambani was nurturing long term telecom ambitions. With Mukesh announcing the launch of 4 G telecom services through his company Reliance Jio, the wheels seemed to ha e turned full circle. In any case, analysts following the careers of the two brothers suggest that the two have actually buried the hatchet after 2011 to protect their own interests. Ten years after they split amidst controversy and rancor, the rapprochement is perhaps more low key and subtle.</div><div> </div><div>But for those following the Ambani saga, this unusual anniversary reminds us of a lot of things about allegations of crony capitalism in the country. The statistically minded will churn out lots of numbers to indicate how the two brothers dominate corporate India. After all, with personal net worth estimates of $30 billion and $10 billion respectively, Mukesh and Anil are still some of the richest people in the world. But those prone to gossip will continue to wonder about the nexus between industrialists, politicians and bureaucrats. </div><div> </div>
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