RCom-MTN issue: RIL is ready to go to court

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New Delhi, Jun 18: Mukesh Ambani-owned Reliance Industries Ltd (RIL) today said it is ready to go to court over the RCom-MTN merger issue. "There is no criminality attached to the signing of the agreement dated January 12, 2006. If any proceedings are adopted, we will not only defend them but will also consider our options for such a malicious action," said a company source.

Earlier, younger brother-led Anil Dhirubhai Ambani Group (ADAG) had threatened to start criminal proceedings against RIL officials amidst the spat between the two groups over merger deal between RCom and South African telecom giant MTN. Last week, RIL had sent letters to MTN and RCom, claiming it had signed an agreement with ADAG that reserves the right of first refusal over any transfer of shares by the ADAG.

RIL had threatened that any violation would be dealt with legally and the company would also seek damages. It added that the agreement was very much in place and that ADAG had never challenged the validity of the same.

On the other hand, RCom charged RIL officials of ''criminal breach of trust'' and ''gross violation of fiduciary obligations'' in signing the alleged agreement. It termed the agreement as ''one-sided and not on arms length basis'' saying that the agreement was signed when RIL was in control of both the companies before the group was split between the two brothers.

UNI

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