Jul 23, 2007

Reliance sued by McKinsey

In the split between the Ambani brothers looks like McKinsey & Company's left wondering whom to hand over their invoice of Rs. 27 crores (US $ 6.7 million)

According to a winding-up petition filed by McKinsey last Thursday, Reliance Industries refused to pay the dues after RCom shifted to Anil Ambani under the settlement between the two Ambani brothers in 2005. RCom, in turn, refused to pay up on grounds that it had not signed any deal with McKinsey.

According to a winding-up petition filed by McKinsey last Thursday, Reliance Industries refused to pay the dues after RCom shifted to Anil Ambani under the settlement between the two Ambani brothers in 2005. RCom, in turn, refused to pay up on grounds that it had not signed any deal with McKinsey.

This is probably unique because it is perhaps the first time that the Firm is suing an Indian client, and that too such a high profile business group. Personally, I feel that RCom should pay, considering that it was transfered to the Anil Ambani group along with all assets and liabilities. It is unlikely that they did not have knowledge of McKinsey & Company's pending invoice !

2 comments:

  1. Hey Gautam ..

    Good to see you bak in action ..

    Hope you doin well now ..

    Dheeraj Goyal

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  2. I wonder why Reliance Group, among all Indian behemoths, get into all sorts trouble - Be it Ambani Jr's land in Noida, or Ambani Sr's mansion in Mumbai. What is even more astonishing is the group's overall growth in walth creation despite all these troubles.

    I am perplexed whether to question their style of functioning due to the former or salute them due to the latter.

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