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| Gas row: RNRL seeks cross-examination of PetroMin |
| Press Trust of India / New Delhi Nov 26, 2009, 19:38 IST |
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In a new twist in the gas row between the Ambani brothers in the Supreme Court, the Anil Ambani-led Reliance Natural Resources (RNRL) today sought cross-examination of Petroleum Minister Murli Deora, accusing the government of siding with the Mukesh Ambani's group Reliance Industries (RIL).
"I want both the Petroleum Minister and his Secretary to be cross-examined," RNRL's counsel Ram Jethmalani said before a Bench headed by Chief Justice K G Balakrishnan.
He made the plea when the government and RIL opposed RNRL's October 19 letter seeking certain documents from the Ministry of Power relating to gas supply and pricing.
Jethmalani claimed that the documents sought from the government would establish that there was no clause for the government approval on the pricing of gas to be supplied from the KG Basin.
"The government is bound to produce these documents," he said adding these related to the minutes of the meeting of the Empowered Group of Ministers (EGoM) held on August 28, 2007. The documents referred to the presentation made by the Petroleum Ministry to the EGoM on August 27, 2007.
RNRL said it presumed that the presentation was on the basis of documents prepared by joint secretary in which four issues on gas utilization policy including marketing freedom to the contractor and government's power to put in place pricing policy were raised for consideration.
However, RNRL's plea was opposed by the government and RIL which said that the Anil Ambani Group cannot rely on these documents.
Additional Solictor General Mohan Parasaran said the documents cannot be provided as RNRL has addressed the letter to the Ministry of Power and in the dispute here it was the Petroleum Ministry which filed the Special Leave Petition against the Bombay High Court decision asking RIL to supply gas at the rate of $2.34 per unit.
Further, the ASG said the documents contains the cabinet notes for the EGoM.
However, his submission evoked sharp reaction from the Bench, also comprising Justices B Sudershan Reddy and P Sathasivam, which said "Union of India is one. Both the Ministry of Petroleum and the Power ministry are part of the government."
At this point, Jethmalani said "this shows that there is a conflict between the two ministries".
"That is why we want to cross-examine the Petroleum Minister and his Secretary," he said.
Senior advocate Harish Salve, appearing for RIL, opposed RNRL's plea.
RNRL also accused the government of adopting delaying tactics for not filing the affidavit on its stand on the NTPC issue relating to the supply of gas to the PSU at $2.34 per unit.
Refuting the charge, Parasaran said the affidavit will be filed shortly. RNRL says it is entitled to the supply of gas at the same price fixed for NTPC.
The Ambani brothers are engaged in a legal 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 policy.
RNRL accused Mukesh Ambani of causing breach of trust at the January 12, 2006 board meeting of RIL in which the Gas Supply Master Agreement (GSMA) and Gas Sale and Purchase Agreement were approved.
"The transactions of January 12 are breach of trust with the intention to cause loss to the beneficiary, i.e. Anil Ambani," Jethmalani said.
RNRL alleged that the board meeting of RIL held on January 11 and 12 for arriving at a suitable arrangement for the supply of gas was "illegal and fraudulent" as Anil Ambani was not in control of the resultant companies emerging from the demerger scheme which evolved from the Family MoU of 2005.
Jethamalani said the RIL board produced an "obnoxious" GSMA and approved it when only one Director from RNRL side was present while the other two Directors were for the RIL.
"They (RIL) quietly introduced in GSMA that Government will approve the gas price," he said contending that it was done as RIL knew that it was bound by the MoU.
"Now it knows that the Ministry of Petroleum would relieve it of this obligation," the senior advocate, who has accused the Ministry of Petroleum of colluding with Mukesh Ambani, said.
He said the MoU which provided that the Anil Ambani Group would get the gas on the same terms as supplied to the NTPC by the RIL spoke about the price in figure and not on the basis of any complex formula as presented by the RIL.
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