Special bench to hear plea on KG gas exploration case

The Delhi High Court today decided to constitute a special bench to hear a plea seeking a direction to government for cancellation of licence granted to Mukesh Ambani's RIL for exploration of gas in Krishna-Godavari basin.

The decision to put the matter before a special bench was taken by Chief Justice Deepak Misra as Justice Sanjiv Khanna, who was sitting with him in the bench, recused himself from hearing the case.

Justice Khanna did not spell out the reasons for opting out of the hearing of the case.

The court was hearing a petition filed by M Furquan, a journalist, seeking a direction of the court to the Centre for cancellation of licence granted to a Joint Venture (JV) of RIL and NICO in KG-D6 for exploration of natural resources.

The petitioner also sought a direction to the Centre to take over the control and management of the Krishna-Godavari gas project immediately from the JV.

He also said even after government auditor CAG reported "serious violation" of rules in KG basin, the government is not taking any action though he has made several representation to the Centre in this regard.

"Even after CAG reported serious violation about KG basin contract, government is not taking any action ," he said.

In his petition, Furquan alleged the JV has cheated the government by inflating the expenditure as there is a provision in the revenue-sharing agreement that RIL is entitled to recover all expenses before sharing it with the government.

"Under the revenue-sharing agreement between the government and JV, the JV is allowed to recover all costs before revenue is shared. The higher the cost of the JV, the revenue available to the government will be lower. By inflating the expenditure... JV has cheated the government and their licence is liable to be cancelled," Furquan pleaded.

The petitioner furhter said it is the duty of the government to ensure that the resources of the nation are being used in the best interest of citizens of India.

"The Constitution of India envisages exploration, extraction and supply of gas to be within the domain of governmental function. It is the duty of the Union of India to make sure that these resources are used for the benefit of the citizens of this country," he said.

Earlier, the petitioner had moved Supreme Court which had directed him to approach the high court.