War between the Ambani brothers, Mukesh and Anil, is getting more vicious with Reliance Communications threatening to take the Reliance director to court over the January 12, 2006 agreement.
RIL says that the agreement gives it the right of first refusal over the RCom shares that are to be swapped with MTN by Anil Ambani from his personal shareholding. RIL said that it did not mind even suing MTN if necessary if it goes ahead with the negotiations with RCom.
RCom admits that the January 12 agreement does contain the right of first refusal but it had objected on the same day that the agreement was signed. It had informed in writing to RIL that the signing of the agreement by RIL officials was fraudulent misuse of powers by RIL officials in execution of the alleged agreement of January 12, 2006 and a criminal breach of trust by RIL officials. It said the alleged agreement is one-sided and not at arms length basis. The control of RCom board was handed over to the Anil Ambani Group on February 7, 2006.
An RCom spokesperson said, “At this stage, all options including criminal proceedings against L.V. Merchant, Sandeep Tandon, K. Sethuraman and other RIL officials involved in the signing of the deal, are open if RIL seeks to rely on the alleged agreement.”
Meanwhile, there are unconfirmed stories that one of the trusted lieutenant’s of Mukesh Ambani, chairman of RIL is already in Johannesburg and Mukhesh Ambani himself is likely to go there this week.