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Monday, September 29, 2008

Govt seeks to become party between warring Ambani brothers

Govt seeks to become party between warring Ambani brothers --September 29, 2008

Government is seeking to become party to the court case between Mukesh and Anil Ambani as to get the injunction on sale of gas from the nation's prime D6 fields lifted, Oil Secretary R S Pandey said today.

Natural gas from Mukesh-run Reliance Industries' eastern offshore D6 field will help bridge the energy deficit in the country, Pandey, who met Mukesh Ambani at his office this morning, said.

However, the legal dispute between the brothers and the petition that the Government had moved did not figure during the 45-minute discussions.

"We did not discuss about this case. He did not talk about this," Pandey said, but did not say what future action the Government may take if the Bombay High Court did not vacate the stay on gas sales from D6.

"We will cross the bridge when we reach it," he said when asked if the Government may move Supreme Court.

Anil Ambani's Reliance Natural Resources Ltd claims right over 28 million standard cubic meters per day of gas from D6 as per a family agreement that split the Dhirubhai Ambani empire into Mukesh and Anil. RNRL's claim is disputed by RIL.

The Bombay High Court on plea of RNRL had stayed sale of gas from D6 to anyone other than RNRL and state power utility NTPC, to which RIL had in 2004 bid to sell 12 mmscmd gas at $2.34 per million British thermal unit (mmBtu).

"Our lawyers have already moved an application (in the Mumbai High Court) seeking vacating the injunction," Pandey said.

Government had impleaded in the gas row between the two brothers on the advice of Attorney General and the Law Ministry which saw the Government as an "affected party" from the Bombay High Court stay on sale of gas from D6.

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