Winning Bizness Desk

Mumbai. A fresh legal battle has erupted between Anil Ambani and the Hinduja Group over the use of the iconic "Reliance" brand name, reigniting tensions that trace back to the division of the Reliance empire after the death of its founder, Dhirubhai Ambani. This dispute comes after Anil Ambani's firm filed a petition with the National Company Law Tribunal (NCLT), seeking to prevent the Hinduja-owned Indusind International Holdings Limited (IIHL) from using the "Reliance" name in its operations.

Controversy Over Reliance Capital's Branding

Anil Ambani’s company, Anil Dhirubhai Ambani Ventures Private Limited, has requested that IIHL be barred from using the Reliance brand name following its acquisition of Reliance Capital. The petition argues that only the Ambani family should have the right to use the "Reliance" brand, a name that has become synonymous with their legacy in Indian business.

The dispute stems from the resolution plan approved by the NCLT earlier this year, which allowed IIHL to use the "Reliance" name for a period of three years. This approval was granted after IIHL successfully acquired Reliance Capital for ₹9,641 crore in an auction process. Reliance Capital, once a financial powerhouse, had defaulted on loans amounting to ₹25,000 crore, leading to its eventual sale under the Insolvency and Bankruptcy Code (IBC).

Legal Battle Over Brand Rights

Anil Ambani’s petition argues that the use of the "Reliance" name by any entity outside the Ambani family could cause confusion and dilute the brand's identity, particularly as Mukesh Ambani’s Jio Financial Services is set to enter the financial services sector. The petition emphasizes that the original decision to allow IIHL the use of the Reliance name was made without properly considering the Ambani family’s stake in the brand. The NCLT is set to hear this case on Tuesday, marking the beginning of what could be a prolonged legal tussle between two of India’s most prominent business groups.

Historical Context and Brand Value

The "Reliance" brand has been a point of contention since the division of assets between Mukesh and Anil Ambani following their father’s death in 2002. Both brothers were allowed to use the Reliance name for their respective ventures, leading to the establishment of two distinct business empires under the same brand umbrella. With Mukesh Ambani's continued dominance in industries such as telecommunications, retail, and now financial services, the ongoing dispute highlights the brand's immense value and the lengths to which business entities will go to protect their rights to it.