Ambanis at loggerheads over gas supply

NEW DELHI: Signaling the start of yet another battle between the Ambani brothers, younger sibling Anil Ambani group’s sources on Tuesday alleged that Mukesh’s group was “guilty of systematically violating” every major commitment made in a settlement reached on Reliance empire.

Charging that Mukesh Ambani group was desperately trying to divert attention to non-issues, ADAG sources said elder brother’s group wanted to ‘dishonour’ June, 2005 agreement on gas supply to Anil’s group company Reliance Energy.

When contacted, the spokesperson of Reliance Industry, the flagship company of Mukesh’s group, declined to comment but sources questioned Anil group’s move saying they had the option of approaching the mother, Kokilaben, the architect of the settlement, or arbitrators if they felt so aggrieved.

“If they were still dissatisfied, they could take legal recourse instead of taking the issue up with the media,” sources said. This is the latest round of battle between the two brothers after a few weeks’ lull. Last month the two sides had accused each other of violating the non-compete agreement reached between the two sides.

In their latest offensive, ADAG sources alleged that “Mukesh Ambani group was solely responsible for delaying NTPC and Reliance Energy’s large power projects of national importance”.

The bone of contention between the two brothers now appears to be the gas supply contract and pricing, a must for Reliance Energy’s 7,400 MW Dadri power project in Uttar Pradesh.

ADAG sources also charged Mukesh Ambani group with “manipulating media to spread misinformation” on government approvals for the gas supply agreement. On the day Anil Ambani announced Rs 61,000-crore investment in Orissa for power generation and transmission projects, RIL sources had alleged “harassment” of its employees in the hands of Reliance Communication, an ADAG company, in Mumbai.

Reliance Communication sources had dismissed the allegations and in fact levelled counter charges that RIL had not paid it about Rs 200 crore as rent for the premises.