RNRL puts govt on mat in RIL case

Anil Ambani’s Reliance Natural Resources Ltd has added a twist to its contractual violation case against Mukesh Ambani’s Reliance Industries Ltd by questioning the very ground of the Centre’s plea to intervene in the litigation. RNRL has told the Bombay High Court that by government’s own admissions at various forums, the Centre does not have any say in a commerical dispute between two entities.

The Centre wants to become a party to the case with the ‘‘limited’’ objective of getting the court to lift its stay on sale of gas from RIL’s Andhra offshore field. The case concerns sale of gas to RNRL ‘‘committed’’ by RIL from the field. The government had filed papers outlining its role in pricing and marketing of gas to justify its reason for being heard in the case. The essence of RNRL’s reply is that its dispute with RIL does not come under the contract Mukesh Ambani’s firm signed with the government for getting the acreage. RNRL has pointed to views of the government’s advisory body for exploration that said, “The dispute between RIL and RNRL has arisen in the course of sale of RIL’s share of petroleum, which is outside the purview of PSC (production sharing contract.”

In support of its opposition to government being heard in the case, RNRL pointed out that gas committed to it as part of the Reliance empire’s demerger deal was from RIL’s share and not from the government’s share. It pointed to views from the government’s advisory body that said the government had a say over only its share of gas and cannot encroach on the freedom granted to contractor under the PSC with respect to the latter’s share.

Hinting at the government’s double-standards, RNRL said the government has refused to intervene in a separate case concerning gas sales that stateowned generation utility NTPC is fighting with RIL on the ground of it being a ‘‘commercial dispute’’. On March 4, the government had told Parliament, ‘‘...the court case filed by NTPC against RIL is a commercial dispute between the two companies regarding gas supply agreement and the government is not a party to this gas supply agreement’’.

RNRL said Centre had also told Parliament on August 21 that, ‘‘Government is not a party to the agreement, if any, signed between RIL and RNRL. In terms of PSCs signed by the government under NELP regime, the operators have freedom to market gas within India, including UP.’’

Source:-The Times of India Delhi 9 December 2008 P. 20
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