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SC asks Ambanis to settle gas row through ‘suitable arrangement’ |
The Supreme Court on Wednesday asked why the Ambani brothers cannot settle their gas
supply row through a “suitable arrangement.” During a hearing of the dispute over
supply of gas by RIL to RNRL at 2.34 dollars per mmBtu, the bench headed by Chief
Justice K G Balakrishnan said the two parties could arrive at a "suitable arrangement"
through arbitration. The case between Reliance Industries, headed by Mukesh, and
the Reliance Natural Resources Ltd, led by Anil, is over a deal to sell gas from
the Krishna Basin Reserve to the Reliance Natural Resource Limited (RNRL) at below-market
rates as per a family settlement. RIL headed by Mukesh, told the court that it
considered the government's gas utilisation and pricing policy as the "suitable
arrangement." RIL counsel Harish Salve also opposed Reliance Natural Resources
Ltd's plea for dismissing RIL's petition, saying only his client's creditors or
members of the Board can challenge maintainability of the petition. Salve said
RNRL was a third party and hence, cannot seek dismissal of RIL's plea. RNRL has
also separately challenged the government's petition in the dispute. Just ten
days ago, Anil made a surprise truce offer to resolve the dispute amicably. But
with Mukesh rejecting Anil's olive branch, the action has now moved to the Supreme
Court. In a statement on October 11, Anil said all disagreements could be resolved
within weeks, but RIL questioned the sincerity of the offer made "through the
public domain" and said Anil could have easily contacted his elder brother directly.
RIL also asked Anil to demonstrate the bonafide of his intentions behind the latest
overture, adding it welcomes this positive indicator and will not be found wanting
in responding to them constructively. The latest tussle between the feuding brothers,
which stems from the 2005 break-up of the Reliance empire built by their father,
has raised concerns it could discourage investment in the sector as India scrambles
to shore up its energy security. The Government had earlier made a petition to
intervene in the case, arguing that the gas is 'state property' and that the private
agreement between the Ambanis over the gas is not valid. |
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