ADAG seeks changes in gas supply
The agreements between the four cos transferred to Anil and Mukesh' flagship co RIL Industries may become the bone of contention.india Updated: Feb 09, 2006 15:46 IST
The agreements between the four new companies transferred to Anil Ambani and his elder brother Mukesh' flagship company Reliance Industries may become the bone of contention, with younger scion seeking changes in the pacts saying there were major deviations from agreed position.
"Reliance-ADAG (Anil Dhirubhai Ambani Group) will write to RIL for amendments to the gas supply, non-compete and brand agreements. These agreements were signed when the new ADAG companies were under RIL control," ADAG sources said.
The three agreements contained "major deviations" from agreed positions in the settlement between Anil and Mukesh, they said.
The decision to write to RIL was revealed following news reports that RIL and ADAG had signed a non-compete agreement, wherein the elder brother's group was free to enter the airport business in case Anil's side failed to get airport modernisation contracts for either Delhi or Mumbai.
Sources in Mukesh group declined to be drawn into the controversy, saying they had not heard from Anil's camp on the three agreements.
The latest round of acrimony had started last week after news reports that RIL and Reliance Natural Resources Ltd, one of the four companies transfered to Anil on February 7, had signed a gas supply agreement. The Anil camp had declared that suitable amendments would be made in the three pacts after these companies were handed over to them.
These three agreements, reportedly signed on January 12, were also a part of the draft information memoranda submitted by RIL to stock exchanges for listing of Reliance Energy Ventures Ltd, Reliance Capital Ventures Ltd and Reliance Natural Resources Ltd, sources said.
Significantly, after taking management control of the four companies, which also includes Reliance Communication Ventures Ltd, Reliance-ADAG had said yesterday that the Boards of the four companies decided to revise the information memoranda with "correct information and details".
Anil's camp had previously questioned the propriety of elder brother's side signing the deal, even when the companies were under his (Mukesh) control.
In a strongly-worded statement on Sunday, Anil's camp had said that these three agreements had been "shockingly executed while the four Reliance-ADAG companies were still under RIL control".
The Reliance-ADAG had also dubbed the signing of these agreements as against "all fundamental principles of propriety, conflict of interest, transparency, fairness and corporate governance."
First Published: Feb 09, 2006 15:10 IST