Gas price case Day 2: RIL project not for charity, says SC

Arguments in the RIL gas price case continued in the Supreme Court for the second day today.

Left leader and petitioner Gurudas Dasgupta's counsel continued to build a case of alleged collusion between the oil ministry and Reliance Industries.

Also Read: Gas price hike to benefit ONGC, Oil India more: RIL to SC

Petitioners also questioned the feasibility of the gas price formula recommended by former RBI governor C Rangarajan, which will be used by the government to review prices every quarter.

Dasgupta's lawyer Colin Gonsalves highlighted the reservations expressed by the parliamentary standing committee which had called for a review of the Rangarajan formula to bolster his case. The parliamentary panel headed by former finance minister Yashwant Sinha had also recommended an upper ceiling for gas prices. On the argument of windfall gains for Reliance, the SC bench remarked: "If someone is spending on a project like this, it will not be for charity. It will look for some profits.”

The matter will now be taken up on March 24.