The move comes after RCom refused to participate in the conciliatory meetings called by RIL to iron out the right of first refusal (RoFR) issue. RIL has also copied the letter, the fourth in a series, to South African telecom major MTN Group, with which RCom is in exclusive talks for a reverse merger.
"RCom has refused to participate in the conciliation meetings under the alternate dispute resolution provisions contained in the non-competition agreement. RIL has commenced arbitration proceedings by nominating Justice B P Jeevan Reddy, a former judge of the Supreme Court of India as an arbitrator for resolution of the disputes."
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to an arbitrator whose decision they agree to be bound.
According to an RCom executive, the decision is "unilateral". Arbitration by definition itself means appointing a mediator who is acceptable for both the parties, while in this case RCom was not even consulted.
When contacted an RCom spokesperson said: "RIL has issued fourth letter today threatening legal action on MTN discussions. RIL's mala fide design to derail MTN discussions is clearly being exposed. RIL has successfully destroyed India's image in foreign eyes and RIL's notice for arbitration proceedings are legally and factually unwarranted".