Ambani family Mou cannot be ignored: Jethmalani
New Delhi | Wednesday, Nov 25 2009 IST
 

Senior counsel Ram Jethmalani continuing his argument for Anil Ambani group firm RNRL, today submitted before the Supreme Court that the family MoU has already been implemented under the scheme of demerger of the Reliance group of companies.

Mr Jethmalani also asserted that even an attempt to smuggle in a non existing power of the Union Oil Ministry will not effect the binding nature of the family MoU dated June 18, 2005. Mr Jethmalani also submitted before a bench comprising Chief Justice K G Balakrishnan and Justices B Sudarshan Reddy and P Sathasivam that under the scheme of demerger, it was envisaged that resulting companies shall be independent and shall not be obedient subsidiaries of Mr Mukesh Ambani. He had contended that Dadri Power Project could not take off because of the absence of bankable agreement between RNRL and RIL as the project required capital investment of Rs 25,000 crore and funds cannot be raised without bankable agreement, under which the power project must be assured of natural gas supply at 2.34 dollar per unit. The two Ambani brothers are locked in a fierce legal battle over the fixation of the price of natural gas available in 339 Sq Km area of Krishna-Godavari gas basin in Andhra Pradesh. According to RNRL, Union Oil Ministry was hand-in-glove with Mukesh Ambani and was sparing no efforts in frustrating the implementation of the family pact under which Mukesh Ambani Group Company RIL has to supply natural gas to RNRL for 17 years at 2.34 dollar per unit, but the former is not prepared to supply gas below the rate of 4.2 dollar per unit which has been fixed by the Union Government. Natural gas plays a vital role in power generation and this is why the government has claimed that being the watchdog of public interest, it cannot be denied the role of mean regulator for distribution and supply of national resources and minerals. According to Mr Jethmalani, government had given contracts for exploration, production and distribution of natural gas to private players in 1999 under the policy of globalisation, and marketing rights were given to private contractors in return for huge investments made by them as the government realised that it has no money for exploration and production of sea wealth.

-- (UNI) -- 25DI46.xml

 

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