Ambani battle: Jethmalani accuses oil ministry of graft...
A HC bench has asked the Ambani brothers to seek their mother's advice over an agreement for supply of natural gas from the Krishna Godavari basin.
Senior counsel Harish Salve, representing Mukesh, had earlier argued that it was a private agreement between the brothers brokered by the mother and it didn't bind their respective companies and therefore the company court couldn't intervene. But Anil's legal team, headed by Jethmalani, said the issue was no longer between the brothers alone and had entered the corporate domain since the board of both companies had taken note of the agreement and thanked the mother for her "tiring and ceaseless effort".
The hearing in legal battle between the brothers turned high-octane with Jethmalani throwing in allegations of corruption against petroleum ministry. Jethmalani questioned the government's opposition to a suggestion that RNRL be allowed to sell gas till such time that its plant is not fully set up. Rohtagi said that if RIL supplied gas, RNRL would sell it to consumers as per government policy and once the plants came up, the gas would be used only for power generation. But RIL said it was not obliged to supply gas until RNRL's power plants come up, which is expected to take three years. Anil is setting up power plants at Dadri at a cost of about Rs 20,000 crore.
The Centre's counsel, T Doabia, created a flutter when he interrupted to say gas was a government property and government's approval would be required if another company was to get gas for trading from RIL.
Anil's case is that Mukesh even backed out of his agreement with NTPC over supply of gas. He alleges Mukesh did this because the agreement between the brothers was that Mukesh's RIL was to supply gas to RNRL at conditions "no worse" than what was awarded to NTPC. In fact, NTPC has filed a separate suit in 2006 before the Bombay high court against RIL in which solicitor general Goolam Vahanvati appeared for NTPC and argued that there was a "concluded contract" between the corporation and RIL.
On Thursday, the senior counsel appearing for Centre said there was "no concluded contract between NTPC and RIL."
Jethmalani pointed out that this was a "stark contradiction to the stand taken by NTPC, represented by the solicitor general". He said, "Government seems to be more concerned with the private interest of RIL than the commercial interest of a government company. This is scandalous."
Anil's company is not happy with the present GSMA on the grounds that it does not give guarantee of duration, quantity of supply as well as the price of gas.
Senior counsel Harish Salve, representing Mukesh, had earlier argued that it was a private agreement between the brothers brokered by the mother and it didn't bind their respective companies and therefore the company court couldn't intervene. But Anil's legal team, headed by Jethmalani, said the issue was no longer between the brothers alone and had entered the corporate domain since the board of both companies had taken note of the agreement and thanked the mother for her "tiring and ceaseless effort".
The hearing in legal battle between the brothers turned high-octane with Jethmalani throwing in allegations of corruption against petroleum ministry. Jethmalani questioned the government's opposition to a suggestion that RNRL be allowed to sell gas till such time that its plant is not fully set up. Rohtagi said that if RIL supplied gas, RNRL would sell it to consumers as per government policy and once the plants came up, the gas would be used only for power generation. But RIL said it was not obliged to supply gas until RNRL's power plants come up, which is expected to take three years. Anil is setting up power plants at Dadri at a cost of about Rs 20,000 crore.
The Centre's counsel, T Doabia, created a flutter when he interrupted to say gas was a government property and government's approval would be required if another company was to get gas for trading from RIL.
Anil's case is that Mukesh even backed out of his agreement with NTPC over supply of gas. He alleges Mukesh did this because the agreement between the brothers was that Mukesh's RIL was to supply gas to RNRL at conditions "no worse" than what was awarded to NTPC. In fact, NTPC has filed a separate suit in 2006 before the Bombay high court against RIL in which solicitor general Goolam Vahanvati appeared for NTPC and argued that there was a "concluded contract" between the corporation and RIL.
On Thursday, the senior counsel appearing for Centre said there was "no concluded contract between NTPC and RIL."
Jethmalani pointed out that this was a "stark contradiction to the stand taken by NTPC, represented by the solicitor general". He said, "Government seems to be more concerned with the private interest of RIL than the commercial interest of a government company. This is scandalous."
Anil's company is not happy with the present GSMA on the grounds that it does not give guarantee of duration, quantity of supply as well as the price of gas.
Labels: Business
posted by Senorita at
4:19 PM
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