Gas exploration from KG basin: SC asks RIL to reply in 4 weeks

The Supreme Court today gave four more weeks to Mukesh Ambani's Reliance Industries Ltd (RIL) and others to respond to the final CAG report which found alleged irregularities, including in payments to contractors on drilling of D6 wells at the Krishna-Godavari basin.

The apex court posted the matter for hearing on May 5 when it would decide the time likely to be given to each party in the matter to put forward their arguments.

On January 6, the court had asked all the parties to complete their replies within six weeks.

A bench comprising justices T S Thakur, J Chelameswar and Kurian Joseph would examine the RIL's response to the CAG report that had sought disallowance of USD 357.16 million (about Rs 2,179 crore) expenditure RIL had incurred on drilling of wells and payments to contractors in KG-D6.

The order was passed during a brief hearing of petitions filed in 2013 by senior CPI leader Gurudas Dasgupta and NGO Common Cause, challenging the erstwhile UPA government's decision to double the price of natural gas from USD 4.2 to USD 8.4 per mmbtu and seeking cancellation of RIL's contract for exploration of oil and gas from the KG basin.

Senior advocate Harish Salve, appearing for RIL, sought additional three to four weeks to respond to the CAG report.

Solicitor General Ranjit Kumar said the Centre can make comments on the Comptroller and Auditor General (CAG) recommendations and findings only after getting the report of Parliament's Public Account Committee which was examining it.

The third PIL on the issue has been filed by advocate M L Sharma.

Earlier, the court had allowed Dasgupta and other petitioners to file their responses to the NDA government's fresh guidelines which would "supersede" the UPA regime's policy on price fixation for natural gas, including that from KG basin, which has been the bone of contention between the Centre and RIL.