Mukesh Ambani-led Reliance Industries Ltd [Get Quote] has strated its arbitration process in its dispute with the Anil Ambani Group firm RCom.

On Thursday, RIL issued the fourth letter to RCom threatening legal action over the MTN discussion, said an RCom spokesperson. MTN is a South African telecom major in which Anil Ambani has shown an interest to acquire stake.

The Mukesh Ambani firm has also appointed Justice B P Jeevan Reddy, a former Supreme Court judge, as an arbitrator, an RIL spokesperson said on Thursday.

Meanwhile, in a statement issued on the issue, RCom has said that the arbitration move has exposed 'RIL's malafide designs to derail MTN talks.'

Mukesh, says RCom, is all set to thwart an acquisition deal by Anil Ambani, and the latter's group has threatened to sue Mukesh's RIL for 'trying to sabotage its potential deal to acquire South African telecom giant MTN.'

Anil Ambani led Reliance Communications [Get Quote] is currently in talks with MTN for a reverse takeover deal. The deal will create one of the ten largest telecom companies in the world, with a potential worth of $70 billion.

ADAG has raised an issue over a RIL communication sent to the MTN group saying that Reliance has the right of first refusal to buy controlling stake in Reliance Communications.

An ADAG spokesperson had said, "RIL's claim is legally and factually untenable, baseless and misconceived." They added that the Mukesh group cannot disrupt the deal. ADAG said the move was "an attempt borne out of mounting despair and frustration."

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