Politics and "Reliance"

Ever since the Indian economy has been liberalised, or rather from the time when the late Prime Minister Rajiv Gandhi initiated the process way back in 1985, the Reliance group has loomed large over the Indian industry. As of today, I am told by various newspapers as to how Reliance Industries enjoys a near monopoly in the petrochemicals sector, how their Jamnagar refinery is the largest in India, and maybe even in Asia, and how their wireless local loop or WLL venture has revolutionised the Indian telecommunications scene. That is admirable, because we must not forget where it all began, on a petrol pump in Yemen.

The late Dhirubhai Ambani was a petrol pump attendant in the city of Aden in Yemen in the late 1960's, and came from very humble roots. Unlike the well-established Birlas, Godrejs, and Tatas, he had no ancestral wealth to rely upon for starting his business. So, he turned to the markets, and with the first IPO, I think, he managed to start his company. In just 20-25 years, that small enterprise has metamorphised into the largest private sector corporate group, with a market capitalisation of over Rs. 60,000 crores. And yet, one cannot help but be cynical of this growth rate. Surely, Mr. Ambani must have greased many palms on his way up, as did many of his counterparts in the industry, but maybe the numbers were much more than the others.

In today's newspaper, I came across an article on how the UPA Chairperson, Mrs. Sonia Gandhi, used a Reliance corporate jet to fly to Moscow to visit the Russian President. Given that the Reliance group is currently being investigated by the Union government for corporate governance irregularities, such a move is very dubious and deplorable. But then the players of politics have rarely found it difficult to separate governance from personal benefit. Reliance is known for its powerful political and bureaucratic connections, and many a favour has been wrangled out of them for a few crores here and there. And given that the same paper carried news about a possible settlement between the Ambani siblings, as the saying goes, zaroor dal mein kuch kala hoga.

Rivals of Reliance have alleged the high-handedness of the government in matters wherein the interests of Reliance clashed with their own. Import duty exemptions granted to Reliance were allegedly denied to their rivals on flimsy grounds. But these can always be dismissed as the cries of sore losers.

The Ambani siblings have also maintained good relations with the political fraternity, albeit maybe with different camps. While the elder sibling is believed to be close to the ruling UPA, and in particular to the Congress (I), the younger, already a Member of Parliament from the state of Uttar Pradesh, is rumoured to be close to certain members of the Opposition, more specifically in the BJP, and the Samajwadi Party. This hotch-potch of relations surely goes to ensure that come what may, the Reliance flag always remains high, as at least one of the siblings manages to ensure a favourable treatment from the government.

Hell, but why should the common investor complain? He gets his dividends on time, the Reliance stock propels the generic stock index skywards, and this means more riches for the common investor. If Reliance grows by deceit and manipulation, then so be it. At least it has the decency to share the spoils of such a sham with those whom it relies on for its growth. So long as it maintains this facade of gentlemanly behaviour, until then its crimes remain pardoned.