Mukesh and Anil Ambani fell out spectacularly after their rags-to-riches father died in 2002 without a will.
Shares in the mobile network firm fell 35% on Monday and finished another 28% lower on Tuesday.
The vote, which must be held by May, has increased the influence of local retailers that lobbied for growth-crimping curbs on the US giants.
The elder Ambani could have even more leverage in bidding for the assets of a company whose demise he helped hasten by storming into the mobile phone market in 2016 with free services.
The company says its new proposal resembles a previous plan, which was hampered however by a lack of regulatory approvals and legal battles.
Tata Teleservices is required to clear any obligations to the government before it approves the deal that was struck in October - this will be Tata's 2nd big payout on a declining mobile-phone business.
Ambani's wealth increased by US$4 billion this year as Reliance doubled its petrochemicals capacity while Reliance Jio Infocomm Ltd outpaced rivals Bharti Airtel and Idea Cellular.
Reliance hopes to get half of its revenue from newer consumer businesses, including telecom, and reduce dependence on core oil-refining and chemicals segments.
Helmed by India’s richest man Mukesh Ambani, the company has struck at least 12 deals over 12 months with an estimated tab of about 289 billion rupees (US$4.2 billion), according to calculations by Jefferies Group LLC and Bloomberg.
It says the government is to blame for the influx of foreign workers which has resulted in low wages.
Both parties agree to call off deal following 'legal uncertainties' and 'interventions by vested interests' that caused delays in regulatory approvals.