Centre scales up role in Ambani brothers' gas row

NEW DELHI: The Centre on Saturday escalated its involvement in the gas dispute between the Ambani brothers by filing a special leave petition

(SLP) in the Supreme Court seeking quashing of the MoU signed between the estranged brothers in 2005. The sovereign right of the government over gas and the production sharing contract between the Union of India and RIL, the contractor, will gain precedence over the private MoU in larger public interest, the government said.

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The MoU, as is now well known, requires the Mukesh Ambani led Reliance Industries Ltd (RIL) to supply gas to Anil Ambani’s firm Reliance Natural Resources (RNRL) at $2.34 per million British thermal unit (mmBtu).

The SLP will enable the government to challenge arguments put forward by both RIL and RNRL and seek direction of the court. In its SLP, the government has named both RIL and RNRL as respondents. If the Supreme Court allows the government to become a respondent it will have wider implications as compared to it being simply an intervenor in the case.

As an intervenor, the court merely seeks the government’s assistance in reaching a verdict. The practical consequences of the government’s SLP are that it moves it closer to the RIL position. RIL also says that the part of the MoU relating to gas supply cannot be implemented.

The SLP wasn’t the only action on the legal front on Saturday. RNRL also filed another affidavit in the apex court opposing the government affidavit which was filed on Friday. Anil Ambani’s RNRL seeking striking of the Centre’s affidavit from the record of the court said that it was filed in “blatant support” of RIL.

Further, the government has no right to file an affidavit in the apex court as it had withdrawn its affidavit from the Bombay High Court on the issue. Again the government has filed its affidavit without examining the concerned parties in the case, said RNRL in its affidavit. The SLP is not listed for hearing along with the petitions of RIL and RNRL on Monday. Speaking to ET, the govt’s counsel TS Doabia who moved the SLP, said,”we will mention the SLP on July 20 when the court will take up the case and request for its hearing”.

The government in its SLP said, “anything contained in the MoU between private individuals that interferes or impinges on Union of India ownership or sovereign rights to regulate the development of the country’s natural resources should be set aside.” link.....