Online BusinessGas row: RNRL accuses govt of siding with RIL
The Anil Ambani group today accused the government of being a party to the "conspiracy" with Mukesh Ambani firm Reliance Industries (RIL) to "destroy" it but dropped its opposition to the Petroleum Ministry putting its stand before the Supreme Court.
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Opening its arguments in the high-voltage gas row, Anil Ambani"s Reliance Natural Resources (RNRL) ruled out the contention of Mukesh Ambani"s RIL and the government that any suitable arrangement for the supply and pricing of the gas from the K G Basin has to be approved by the government.
"Any suitable arrangement cannot be subject to the approval of price by the government," senior advocate Ram Jethamalani submitted before a Bench headed by Chief Justice K G Balakrishnan.
"How can there be an arrangement for the supply of gas to me (RNRL) involving government with which I am totally dissatisfied. There cannot be a suitable arrangement involving the government," he argued before the Bench, also comprising Justices B Sudershan Reddy and P Sathasivam.
However, Jethmalani, who had stoutly opposed the government being made a party to the dispute, today consented subject to the condition that RNRL should have the right to inspections of documents and cross-examination of Petroleum Ministry officials.
This submission was shot down by the Bench which said that RNRL can raise its objections through affidavits.
Jethmalani described the gas row between the Ambani brothers as a saga where the government has kept the public interest at the farthest and huge wealth has been put in the the private pockets.
"Money has passed between two private hands," he said adding, "We are struggling with the elder brother to get 0.1 per cent of wealth and at every stage the government is party to the conspiracy to frustrate the younger brother."
He said, "In spite of being an elder brother (Mukesh Ambani), he is out to destroy me (Anil Ambani)."
The senior advocate said RNRL is entitled for 28 mmscmd of gas from the KG Basin at $2.34 mmBtu and RIL says it is willing to do so but government is not approving it.
"The trouble is brothers are disunited and the elder brother is now with the government. RIL has got a friendly ministry," he said.
The Ambani brothers are locked in a bitter battle over the supply and price of the gas from KG basin.
While RNRL is seeking gas at a committed price of $2.34 per unit, RIL says it cannot honour the commitment made in the family agreement due to government"s pricing and gas policies.
RNRL accused the government of acting in fraudulent manner, vis-a-vis the international bidding floated by the NTPC.
"NTPC had floated the international bid. RIL bid was at $2.34 per mmBtu. That is how they eliminated those who offered the price of $3. And, now they are persuading the government of raising the price to $4.20. This is a fraud," Jethmalani said.
Earlier, the day started on a stormy note with RNRL frequently interrupting the government by accusing it of making submissions which were not part of the records in the Bombay High Court.
The war of words ensued between the government and RIL on the one side and RNRL on the other side after the latter pressed for making state-owned PSU NTPC a party to the dispute.
RNRL"s plea that its contract with RIL was linked to NTPC was objected to by the Government and RIL.
"Our (RNRL) case is that NTPC contract does not require government approval. Therefore, our contract also does not require government approval," senior advocate Mukul Rohatgi, appearing for RNRL said.
His submission saw RIL"s counsel Harish Salve opposing the application moved by RNRL for making NTPC a party in the dispute.
At this point, Solicitor General Gopal Subramanium, appearing for NTPC, said "NTPC is not different from the government" and shared the same view.
"The stand of the government is that the gas has to be supplied at only one price. The stand of the government is to protect the rights of NTPC which has to be judged in accordance with the Production Sharing Contract and the government is committed to NTPC," the Solicitor General said. Salve supported Subramanium"s contention.
The verbal duel ended after the Bench asked both RIL and the government to file their affidavits to clarify their stands on the NTPC issue.