ADAG to seek changes in gas supply, non-compete pacts with RIL

The agreements between the four new companies transferred to the Anil Ambani's Reliance ADAG and elder brother Mukesh Ambani's flagship Reliance Industries may trigger another round of dispute with ADAG demanding changes in the terms of seeking changes to the "major deviations" from the agreed positions on the gas supply, non-compete and brand agreements. The ADAG group says the agreements were signed when the new ADAG companies were under the control of RIL and that the three agreements contained major deviations from the agreed positions in the settlement between the two brothers.

The 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.

The Reliance-ADAG had also dubbed the signing of the agreements as against "all fundamental principles of propriety, conflict of interest, transparency, fairness and corporate governance."

ADAG is particularly aggrieved at reports that RIL and ADAG had signed a non-compete agreement, wherein Mukesh Ambani's enterprises were free to enter the airport business in case the younger brother's enterprises failed to get airport modernisation contracts for either Delhi or Mumbai.

Last week when reports of an agreement between one of the four companies transferred to Anil on February 7, Reliance Natural Resources Ltd and RIL had signed a gas supply agreement first appeared, the Anil Ambani group reacted by stating that suitable amendments would be made to the three pacts after these companies were transferred to it.

ADAG had said that the new boards of the four companies had decided to revise the information memoranda with 'correct information and details' after the transfer of the management.