Ambani brothers cancel all the non compete clauses; Expect to resolve the gas pricing issue
merisarkar news service
New Delhi, May 23, 2010
Ambani brothers on Sunday agreed to dump their differences and strike out contentious non-compete agreements saying this would eliminate any room for further "disputes".
"All existing non-compete agreement between the two groups executed in January 2006 cancelled," both the groups said in strikingly similar statements.
"A new, simpler non-compete agreement executed limited to only gas-based power generation. RIL (Mukesh) and RNRL (Anil) will expeditiously negotiate gas supply arrangement as per the Supreme Court order and hope to conclude negotiations very soon," the statements added.
Ambani brothers also announced that they would expeditiously negotiate gas supply agreement in accordance with the Supreme Court order earlier this month. On the seventh May this month, Supreme Court has asked them to settle the gas dispute within 14 weeks and report back to the Company court.
Both the brothers - Muekesh and Anil vowed to fulfill vision of their father Dhirubhai Ambani, after whose death they separated after an acrimonious fight.
There were speculations that the agreement, approved by the board of Mukesh-led RIL and Anil Ambani Group, came after the two brothers had discussions between them but spokespersons of either did not confirm the same.
The announcement came within days of Anil Ambani meeting Prime Minister Manmohan Singh as also top Cabinet ministers. His visit was followed closely by Mukesh who also met top ministers as also government functionaries.
Before the agreements were ratified, the boards of the respective group companies, top officials of the Mukesh Ambani-led Reliance Industries and Anil Ambani Group had long sessions.
