Govt has no role in gas row, says Anil Ambani

Urges the Supreme Court to dismiss Centres petition on RNRL-RIL dispute

“In the reorganisation of business of Reliance Industries, the government has no locus to intervene,” RNRL said in its reply to the government petition. “An attempt is being made by the government to reintroduce allegations that were withdrawn before the Bombay High Court. This is clearly impermissible,” said the RNRL affidavit, which counters the government’s SLP that is to be heard with related matters on October 20.

Marketing freedom
It clarified that the Production Sharing Contract (PSC) gives marketing freedom to the contractor and the memorandum of understanding (MoU) between the group firms of the Ambani brothers is an arrangement with regard to the part of gas earmarked for RIL in its capacity as contractor.

RNRL is fighting RIL for supply of gas at $2.34 per mmBtu citing a family agreement. The Ministry of Petroleum and Natural Gas had initially sought an order from the apex court to declare the family MoU as null and void, later amended it seeking to strike down only that part of the MoU that deals with gas, saying that private parties can not make agreement on public property.  The ministry was not a party but an intervener in the gas dispute before the Bombay High Court and the government’s share of gas was protected under the Production Sharing Contract and it was completely outside the purview of the disputes between RIL and RNRL.

As regards the issue of pricing, on which RIL has been maintaining that it needs government approval, RNRL pointed out that even the High Court in its judgment in June had held that the price for the purpose of valuation was required to be fixed by the government, but the sale price could be decided by Mukesh Ambani-led Reliance Industries Limited.

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