With just five days left for Anil Ambani's Reliance Communications Ltd (RCOM) to strike a deal with South Africa's MTN, Mukesh Ambani-promoted Reliance Industries Ltd (RIL) today called RCOM for mutual conciliatory talks before initiating formal arbitration.

RIL had earlier written to RCOM, MTN and banks that it had the first right of refusal over sale of RCOM shares according to a non-compete agreement of January 12, 2006. The ADA Group, however, has consistently refused to recognise the agreement.

To fence off its proposed deal from the threat posed by RIL's claims, two Anil Ambani Group companies have already filed caveats in the Bombay High Court. This is to ensure that no ex-parte order is issued in case RIL decides to enforce the first right of refusal.

In a statement issued today, RIL invoked the provisions of dispute resolution contained in the non-compete agreement of January 12, 2006. “RIL has invited RCOM to participate in the process of mutual conciliation prior to commencement of formal arbitration,” the statement said.

Anil Ambani-owned RCOM immediately retorted, saying the move only showed RIL group's frustration. “This is only a sign of RIL's increasing desperation,” said an RCOM spokesperson. He, however, did not confirm whether such a letter was received or not.

Before the Ambani brothers formally split in 2006, RCOM was under the control of Mukesh Ambani. RCOM and Reliance Energy were given to Anil Ambani as part of the settlement between the brothers. But, the two have clashed on one issue or the other, including on gas supply from RIL’s KG basin to Anil Ambani's Dadri plant, setting up of captive power plants by RIL-promoted special economic zones, etc.

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