Left lawmaker wants judiciary to fix natural gas price hike

Veteran communist MP Gurudas Dasgupta Friday sought judicial determination of his plea seeking review of the recent government decision to hike, from April 2014, natural gas prices from $4.2 to $8.4 per million British thermal unit (mmBtu) and a halt to the arbitration proceedings on the issue.

Dasgupta contended that the government and Petroleum Minister Veerappa Moily were working out a "strategy to use arbitration proceedings as a subterfuge and a pretence to take the contentious and public interest issues away from the scrutiny" of the apex court.

As a bench of Chief Justice P. Sathasivam and Justice Ranjana Prakash Desai adjourned the hearing on Dasgupta's PIL by six weeks since the government sought more time to file its response, the Communist Party of India MP, in an application, sought to restrain the government, the oil companies and arbitrators from going ahead with the proceedings.

Pointing to the "quick moving developments" after his PIL was filed, Dasgupta said his earlier impression that "arbitration would move in a fair and transparent manner has been belied".

Urging the court to summon the "entire records, and proceedings", he claimed that it would show that opinion of the senior officials was overruled "in a motivated manner for collateral gains".

"It now appears that the respondent No. 2 (Moily) in particular is determined to collude with respondents 3 to 5 (Reliance Industries Limited, NIKO Resources Limited and BP Exploration (Alpha) Limited.) in the arbitration proceedings so as to make a mockery of these proceedings."

The PIL said that Moily has "stepped up his efforts and has overruled not only the petroleum secretary but also the Director General Hydrocarbons and is pushing ahead to give full support to" the three companies.

Contending that it was Moily who would be deciding on the strategy, documents to be placed before the arbitrators and the law officer who would represent the government, Dasgupta said that he has "lost faith in the arbitration process".

"The arbitrators, though eminent, will be bound to go by the stand taken by the Union of India and the compromises and sell outs made by the Union of India. Ultimately, therefore it appears that award will be collusive."

Dasgupta's application seeking a halt to the arbitration, which was resisted by counsel for the petroleum companies, will be considered on the next date of hearing.

As senior counsel Colin Gonsalves, appearing for Dasgupta, urged the court to permit the deletion of their prayer seeking arbitration and its substitution with a prayer to restrain the arbitration from going ahead, senior counsel Harish Salve drew the attention of the court to an article written by Dasgupta in support of his contention opposing the decision to hike gas prices from April 2014.

Chief Justice Sathasivam said that July 29 when they had issued notice, Dasgupta was present in the court, thereby suggesting that he should have refrained from writing on a matter before the court. Gonsalves said he would look into the matter and advise his client accordingly.