Anil claims 40% RIL; questions airport clause
Seeking amendments in agreements signed between RIL and the four new companies Anil Ambani has decided to stake claim on 40 per cent gas from future reserves of elder brother Mukesh's flagship company and prevent its entry into airports and airport infrastructure.india Updated: Feb 16, 2006 14:13 IST
Seeking amendments in agreements signed between RIL and the four new companies Anil Ambani has decided to stake claim on 40 per cent gas from future reserves of elder brother Mukesh's flagship company and prevent its entry into airports and airport infrastructure.
Taking exception to "material deviations" in agreements signed by RIL with new companies, prior to transferring these to it, Anil Dhirubhai Ambani Group has decided to write to Mukesh's Reliance Industries for changes in the agreement, an issue that may once again become a bone of contention between the two brothers.
"Reliance-ADAG (Anil Dhirubhai Ambai roup) will write to RIL for amendments to the gas supply, non-compete and brand agreements. These agreements were signed when the new ADAG companies ere under RIL control," ADAG sources said.
Elaborating, they said that Boards of the four companies -- Reliance Energy Ventures, Reliance Communication Venture, Reliance Capital Ventures and Reliance Natural Resources -- which met yesterday, "noted that these agreements contain material deviations from the earlier agreed position" from the overall settlement arrived at between Mukesh and Anil on June 18 last year.
In fact, the gas supply agreement is crucial to RNRL's listing and reports of the agreements on Saturday last had triggered the latest bout of acrimonious fight between Ambani siblings that ended when the four companies were transferred to the younger brother on February 7.
Mukesh Ambani's camp could not be contacted despite several attempts.
As per the agreement, signed between RNRL and RIL, the above option was "unilaterally restricted to RIL block acquired upto June 18, 2005 and all future acquisitions of block RIL have been excluded," the RNRL Board noted.
According to sources, NRL Board felt "the exclusion is a clear deviation from the previously agreed position on June 18, 2005 and is only one of several such material deviation in the gas supply agreement."
Similarly with regard to the Non-Compete agreement, the Boards noted that the previously agreed position was that the business relating to Airports and Airports Infrastructure was exclusively reserved to Reliance-ADAG, without any exception.
"However, as per the agreement entered with RIL, which was signed while the companies were still under RIL's control, RIL can enter the business of Airports and Airport Infrastructure -- which is claimed to be incidental/integral or necessary for any of its businesses or where ADAG has not been successful in privatisation of Airports," they added.
The Boards have decided to discuss and finalise appropriate amendments in all agreements with RIL, to bring the same in line with the previously agreed position on all issues, and to protect the interests of 22 lakh shareholders of the companies.
First Published: Feb 09, 2006 18:21 IST