Anil vs Mukesh:R-ADAG claims gas for power rightful

 In addition, the group asserted has that it can set up gas pipelines and
undertake the business of city gas distribution in Delhi and Mumbai as all
three businesses had been exclusively reserved for it under the terms of the non-compete agreement signed with Reliance Industries (RIL) on January 12, 2006.

 "As part of the power business of the R-ADA group, it is fully empowered by the agreement to set up captive fuel supply projects. These include setting up gas pipelines, participating and acquiring gas or coal bed methane blocks from the government under any process that may be initiated by it. Reliance-ADA can also enter into joint ventures or partnerships with gas producers for assuring gas and fuel supplies to its existing and future power projects", sources in the company said.

 "Our plans to enter the gas pipeline business, gas exploration, and
distribution of city gas in Mumbai and Delhi are not a violation of the
non-compete agreement", group sources said.

 When contacted, a Reliance Industries spokeperson said the company was evaluating the claims and would provide its response.

 R-ADA group sources added that RIL-MDA group had unilaterally executed a non compete agreement dated January 12, 2006, while the ADA group companies were still under the control of RIL-MDA group.

 "This agreement is signed on both sides by RIL-MDA group nominees. Even the unilaterally executed non-compete agreement is in line with the agreement of June 18, 2005, and categorically provides that these businesses can be entered into by us", the sources said.

R-ADA group sources also claimed the settlement and agreement between Mukesh Dhirubhai Ambani and Anil Dhirubhai Ambani on June 18, 2005 specifically provided that airports will be with the Anil Ambani group only. The demerger scheme approved by the Bombay High Court on December 19, 2005 provided that suitable non-compete agreements would be entered into to give effect to the family agreement.

"At no stage till January 2006, did Reliance Industries ever claim that they
could enter the airports business," they added.