A consortium of bankers that will fund the Ruias' bid for Hutchison's 67 per cent equity stake in Hutchison Essar Ltd will begin "due diligence" on the company in the next few days, even as differences persist between the partners on the issue of "first right of refusal," making legal intervention more of a possibility. Among these bankers are Morgan Stanley, CitiBank, and Standard Chartered Bank.

Confirming the development, sources said that even though the Ruias were partners in the joint venture, with access to all accounts, their bankers had to undertake "confirmatory due diligence" as part of their corporate governance procedures.

"We hope the bankers will start due diligence in a day or two. The process should not take more than two-three days," said an insider. The JV would also invite Reliance Communications for due diligence in the next few days, sources added.

The Essar group is not interested in meeting visiting Vodafone executives, a clear indication that the Ruias intend to hold on to their stake in the company. In the first official confirmation that they were interested in the Hutchison stake, Essar group chairman Shashi Ruia told PTI, "Of course we are interested. It is our company."

Sources close to the Ruias pointed out that their interpretation of the shareholders' agreement was completely different from Hutchison's and there was no room for a "compromise."

"We would not like to take the matter to its logical conclusion, but we may have no option but to go to court. Under the shareholders' agreement, the jurisdiction on disputes lies in India," they said.

As for Vodafone, its executives started due diligence on Hutchison Essar with a closed-door meeting in Mumbai. A 20-member Vodafone team took part in the meeting. Also present were executives of Ernst & Young, lawyers from Trilegal, investment bankers from UBS and a financial team from ABN Amro Bank.