KG basin gas row: SC to deliver verdict todayMay 7th, 2010 - 12:40 pm ICT by ANI
New Delhi, May 7 (ANI): A three judge bench of the Supreme Court headed by Chief Justice K G Balakrishnan will deliver its verdict on the Ambani gas sharing dispute involving the Krishna-Godavari Basin’s D6 block (KG-D6) on Friday.
There is a likely hood of two separate two judgements, as the apex court’s list of cases for Friday shows that Justice P Sathasivam and Justice B Sudershan Reddy will deliver separate judgements.
If the two judgments don’t concur, the majority opinion will prevail.
The judgment would also set the future course for the gas market, impacting government revenue and the power and fertiliser companies consuming the gas.
At the heart of the war is the gas produced by Mukesh Ambani’s Reliance Industries Limited (RIL) in the Krishna Godavari (KG) Basin.
The case is being seen as one of India’s biggest corporate battles, as it is a face-off between Mukesh and Anil Ambani both billionaires, who own gigantic business groups.
On December 18, 2009, the apex court bench had reserved its judgement in the case.
The apex court heard the case for 26 days spread over nine weeks, beginning October 20, 2009.
The gas is sold to Anil Ambani’s Reliance Natural Resources Limited (RNRL) for its power plants.
The RIL wants to raise the price that was agreed upon by a family agreement in 2005 after the brothers decided to split the empire built by their father, Dhirubhai Ambani.
In 2007, the Government said that the agreed-upon rate of 2.34 dollars per unit was far too low.
The RIL said it had to raise his rates accordingly to 4.2 dollars per unit and follow Government orders because it owns the gas, and that the RIL is just a contractor.
The RNRL accused the RIL of artificially inflating its costs and decreasing its output to make super-normal profits.
The government said it doesn’t recognize the family contract between Anil and Mukesh because the Krishna Godavari Gas is a government property.
Government said that two private parties cannot strike a deal without its clearance.
The government also says it has set the new price based on a fair formula.
The RNRL is seeking, under an earlier family arrangement,
In June 2009, the Bombay High Court upheld the RNRL’s claim. (ANI)
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