Gas row: RNRL accuses govt of siding with RIL

The Anil Ambani group on Thursday accused the government of being a party to the "conspiracy" with Mukesh Ambani firm RIL to "destroy" it but dropped its opposition to the petroleum ministry putting its stand before the Supreme Court.

Opening its arguments in the high-voltage gas row, Anil Ambani's 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 latter.

"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 government being made a party to the dispute, 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 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 per 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.