HC asks Ambani brothers to renegotiate gas pact

The Bombay High Court on Monday asked Mukesh Ambani-led Reliance Industries and Anil Ambani group firm Reliance Natural Resources Ltd to renegotiate within four months, a Gas Supply Master Agreement (GSMA) between them saying it has to be a "bankable" pact.

Reading out the operative part of the order, Justice A V Mohta said GSMA will have to be in-line with the family arrangement between Ambani brothers prior to demerger of Reliance group, and it has to be a "bankable agreement."

Either of the parties can come back to the court if they fail to rework the deal.

Mukesh Ambani-led Reliance Industries Limited (RIL) and Anil Ambani's Reliance Natural Resources Limited (RNRL) were locked in a legal battle over terms of GSMA, under which RIL is to supply gas from Krishna-Godavari fields to RNRL.

RNRL approached the High Court seeking amendment to GSMA, saying that present agreement did not ensure certainty regarding quantity of supply and its tenure.