The Reliance brand name has once again become the center of a significant dispute. Following the legacy of RIL’s founder, Dhirubhai Ambani, a pressing question has arisen: will the Reliance name remain solely under Mukesh Ambani, or will his younger brother Anil Ambani also have the rights to utilize it? Initially, the Ambani family found a way to manage this issue, allowing both brothers to use the brand name. However, a new controversy has surfaced, not between the brothers but involving the Hindujas Group. Anil Ambani has accused the Hindujas of misusing the Reliance brand name, prompting him to approach the National Company Law Tribunal (NCLT) for resolution.
Legal Battle Over Brand Name
Anil Ambani’s Petition Against Hindujas
In a petition filed with the NCLT, Anil Ambani’s company, Anil Dhirubhai Ambani Ventures Private Limited, has requested an injunction to prevent IndusInd International Holdings Limited (IIHL) from using the Reliance name. The petition seeks directives to ensure that IIHL does not utilize the brand name following the resolution plan for the financially distressed Reliance Capital. The NCLT is set to hear this matter on Tuesday, and the outcome could change the way the Reliance name is used in the business landscape.
The Context of the Dispute
In February, the NCLT had approved IIHL’s resolution plan, permitting them to use the Reliance name for a duration of three years. Recently, IIHL acquired Reliance Capital by paying ₹9,641 crores to its creditors. Reliance Capital, which has been under financial distress due to a default on a ₹25,000 crore loan, was acquired through an auction process approved by creditors in June 2023. This situation has led to the prevailing confusion over the rights to use the Reliance brand, previously linked to the Ambani family.
Who Can Use the Reliance Name?
According to the existing agreements and family arrangements, the Reliance brand can primarily be utilized by the Ambani family. Mukesh Ambani is preparing to launch financial services through Jio Financial Services, which adds another layer of complexity to the situation. The petition points out that the approval for the use of the Reliance name was granted without considering Anil Ambani’s stance, raising questions about due process in the decision-making.
Implications of the Dispute
This dispute has far-reaching implications for the business strategies of both families. If Anil Ambani prevails in the tribunal, it could set a precedent for the usage of the Reliance name and impact ongoing and future business ventures. Conversely, if IIHL retains the rights, it may impact the branding strategies of Reliance Group companies, especially those in financial services.
Table: Key Players in the Dispute
| Entities Involved | Role |
|---|---|
| Mukesh Ambani | Chairman of Reliance Industries, holder of Reliance brand rights |
| Anil Ambani | Chairman of Reliance Capital, filing petition against Hindujas |
| Hindujas Group | Accused of misusing the Reliance name through IIHL |
| IndusInd International Holdings Limited (IIHL) | Group acquired Reliance Capital, involved in current dispute |
| National Company Law Tribunal (NCLT) | Judicial body reviewing the dispute |
Conclusion
The ongoing legal tussle over the Reliance name illustrates not just a family feud but also reflects larger implications for branding and business operations in India. As the NCLT prepares to hear the arguments, all eyes will be on the tribunal’s decision, which could set critical precedents for corporate naming rights and the legacy of one of India’s most influential business families.
