India-based company drops libel claim against Financial Times

India-based Reliance Communications has dropped its libel claim against the Financial Times, which sought $1.1 billion in damages over reporting on his business record.

Benjamin Parkin of the Financial Times reports, “The lawsuit was filed in the western Indian city of Ahmedabad last year over an FT report on a now-abandoned agreement by RCom to sell most of its telecoms assets to rival operator Jio, part of Mr Ambani’s elder brother Mukesh’s group.

“The report highlighted the brothers’ contrasting fortunes. Since dividing their father’s corporate empire in 2005, Mukesh Ambani has gone on to become Asia’s richest man with a net worth of about $57bn, according to Forbes.

“But the net worth of Anil Ambani, who was also once one of Asia’s wealthiest businessmen, has now shrunk to less than $2bn, according to Forbes, and RCom has entered bankruptcy proceedings. Anil Ambani was earlier this year bailed out by his elder brother when facing jail over an unpaid sum due to Swedish telecoms group Ericsson, a move that seemed to draw a line under a long-running, public falling out between the pair.

“RCom filed the claim as part of a spate of 26 lawsuits filed by businesses controlled by Anil Ambani against media organisations, journalists and politicians last year.”

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