Business Daily from THE HINDU group of publications
Friday, Jul 25, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Friday, Jul 25, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Corporate Disputes
Our Bureau Mumbai, July 24 The formula suggested by Reliance Natural Resources Ltd for sharing the gas from the Krishna-Godavari fields with Reliance Industries Ltd would amount to giving subsidy to the former. It would cost Reliance Industries $1 billion a year, said Mr Harish Salve, Senior Counsel for Reliance Industries. He was arguing on Thursday before the division bench of the Bombay High Court in the ongoing case between Mr Mukesh Ambani-led Reliance Industries Ltd and Reliance Natural Resources Ltd of Mr Anil Ambani over the supply of natural gas from the Krishna-Godavari gas fields. Mr Salve pointed that Reliance Natural wants the gas to be kept in the fields and only to be supplied when their gas-based power plants come online in five years. Such a capping of gas is not possible. Mr Salve said that the Ambani brothers entered into a private memorandum of understanding in June 2005 based on which the Reliance empire was split between the two. The MoU has served as a foundation for Reliance Natural’s claim for the KG basin gas. Therefore, they must place it before the court, he said. Mr Salve pointed that the board of directors of Reliance Industries has not signed the MoU. Mr Ram Jethmalani, Senior Counsel for Reliance Natural argued that there are other provisions in the MoU which the Ambani brothers do not want to make public; therefore it remains in the private domain. But the relevant provisions of the MoU have been placed before the court, he said. KG basin gas to cost 1/5th of crude oil: Mukesh Ambani ‘$12-b K-G basin gas, pipeline project on track’ More Stories on : Corporate Disputes | Courts/Legal Issues | Petroleum | Reliance Industries Ltd
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