RIL yet to sign import pact: Anil group
Anil's group disclosed that Mukesh's RIL has not yet signed the agreement with RIL Ventures for supporting capital goods imports.india Updated: Mar 02, 2006 17:49 IST
The tussle between the two Ambani brothers looks far from over with younger sibling Anil's group today disclosing that Mukesh's RIL has not yet signed the agreement with Reliance Communication Ventures for supporting capital goods imports to the tune of Rs 10,000 crore.
Coinciding with approval from stock exchanges for its listing, RCoVL said in a public announcement that as per the agreed position, RIL has to continue support to it and its affiliates - which includes Reliance Infocomm - in the shape of export obligations against import of goods and services up to Rs 10,000 crore during April 1, 2005 to March 31, 2007.
"RIL has not yet executed any agreement in connection with this obligation. The reconstituted Board has decided to take appropriate steps to enter into appropriate agreements with RIL in line with agreed position to protect interests of the company and its shareholders," RCoVL said.
RCoVL, one of the four demerged companies transferred to Anil, said this support was to be given for imports under the central government's Export Promotion Capital Goods Scheme to enable its telecom entities import goods and services.
Besides the Trademark and Non-Competition pacts between the two sides, Mukesh Ambani-controlled Reliance Industries had to sign three more agreements with RCoVL for shared services, property lease and licences.
Differences have also emerged in the non-competition pact entered into by RIL and RCoVL, with the latter saying that as per agreed position, "Mukesh Ambani or RIL Group is not to directly or indirectly enter into the broadband business."
As per the non-competition pact signed on January 12, the Anil group has the exclusive right to set up telecom ventures exluding those related to broadcast and broadband services, IT-enabled services such as BPOs and e-commerce.
The Reliance-ADA Group has said that all these agreements contain significant deviations from the agreed position and it plans to take suitable steps to amend these pacts.
Under the shares services agreement executed between RCoVL and RIL on January 14 this year, RIL has agreed to continue providing certain services and facilities including conversion of resin into ducts and certain software to the telecom businesses.
Certain agreements for lease were also signed between January 12 and January 25, 2006, under which RIL agreed to lease or use 12 properties for periods up to 99 years. In addition, RIL and its group firms entered into five leave and license agreements permitting RCoVL to use some immovable properties for three years on commercial terms.
RCoVL, which is the only one among the four demerged companies waiting to be listed, also said as per the settlement between the two sides, RIL had to give it Rs 3,100 crore "in cash".
However, the Mukesh group company transferred RCoVL only Rs 372.08 crore in cash and the balace Rs 2,727.92 crore in the form of deep discount bonds of Reliance Communication Infrastructure Ltd held by RIL.
"This has reduced the financial flexibility of the company. This action was taken by RIL (while the company's was still under RIL's control), without even the knowledge of the representative of Anil Ambani on its Board," RCoVL said, adding the reconstituted Board has decided to take suitable steps to restore the position as agreed.
The new RCoVL Board comprises of Anil Ambani, SP Talwar and J Ramachandran. The other three companies - Reliance Capital Ventures, Reliance Energy Ventures and Reliance Natural Resources Ltd - have already been listed. Later, RCVL would be merged with Reliance Capital and REVL with Reliance Energy.
First Published: Mar 02, 2006 13:03 IST