Court permits government to plead in Reliance gas disputeOctober 21st, 2008 - 8:32 pm ICT by IANS
Mumbai, Oct 21 (IANS) The government was Tuesday allowed to present its position on the dispute over natural gas supplies of Reliance Industries being heard by the Bombay High Court.The court said it had no issues in allowing the government to be a party to the matter while hearing the dispute between Mukesh Ambani’s Reliance Industries and his younger brother, Anil Ambani’s Reliance Natural Resources.
The move comes after counsels for Reliance Natural Resources decided to withdraw their opposition and said they had no problem in the government joining the litigation.
The formal order allowing the government to join the hearing as a third party is expected to be passed by the court Wednesday.
The dispute revolves around the natural gas supply from Krishna Godavari G-D6 block over which company has the rights over the hydrocarbon asset gas and at what price.
The Anil Ambani group has claimed at least half of the 80 million standard cubic metres of gas per day envisaged from the fields off the Andhra Pradesh coast - said to be the country’s biggest source of hydrocarbons today.
The group has told the court that under a pact with Reliance Industries, the gas from the Krishna-Godavari basin has to be given to it on the same terms as the state-run NTPC, formerly National Thermal Power Corp.
The family pact records the arrangement between Anil and Mukesh Ambani as part of the demerger scheme of the Reliance group founded by their father Dhirubhai Ambani, and also notes what needed to be done in future.