RIL, RNRL allege contradictions in each other's statements

A day after Justice RV Raveendran withdrew from hearing the case citing potential conflict of interests, the Ambani brothers’ gas row started afresh in the Supreme Court on Thursday.

During the hearing, the Mukesh Ambani-led Reliance Industries Ltd (RIL) and the Anil Ambani Group company, Reliance Natural Resources Ltd (RNRL), alleged certain contradictions in each other’s statements.

Harish Salve, senior counsel for RIL, began laying down the arguments all over again before a new Bench comprising the Chief Justice, K.G. Balakrishnan, Justice P. Sathasivam, and Justice B. Sudershan Reddy (who has replaced Justice Raveendran).

Salve said that the Anil Ambani Group had sought allocation of gas and pricing be done by the Government based on a Gas Utilisation and Pricing Policy. But they themselves are now opposing the policy. The Government, based on the policy, has allocated gas from RIL-operated D6 block to the priority sectors and fixed the pricing of the mineral resource.

Pricing issue

The Government had decided a price of USD 4.2/mBtu which was higher than the price at which RNRL was seeking D6 gas. RNRL was seeking gas at USD 2.34/mBtu based on the commitment made in a family MoU between the two brothers.

In fact, the Anil Ambani group had in a presentation before the Government in June 2007 stated that the Government was the sole owner of the gas and, therefore, can decide on the pricing and allocation of the mineral resource, Salve said. The group had highlighted that the contractor’s (in this case RIL) share of gas should be priced only on the basis of a competitive bidding process that is fair, transparent and in accordance with the Government guidelines, Salve said. However, RNRL is contradicting this stance, he added.

RNRL senior counsel, Ram Jethmalani, opposed Salve’s claim saying it was RIL that was making contradictory arguments. Jethmalani said though Mr Salve had argued before the Bombay High Court that the Gas Utilisation Policy was not binding on RIL and that the Government had no power to fix the price, now Mr Salve is making contentions that are exactly opposite.

“At least be honest to the court and don’t make contradictory statements,”  Jethmalani told Mr Salve in the court.
Taken from Business Line