The Hindu Business Line : Ambani split: ‘Onus on RNRL to make MoU public’

Mumbai, Aug. 5 The family memorandum of understanding between the Ambani brothers, which split the Reliance empire, has become a major issue of argument in the ongoing court case between Reliance Industries Ltd and Reliance Natural Resources Ltd.

Both the companies are arguing before a division bench of the Bombay High Court over division of natural gas from the Krishna-Godavari gas field, which is controlled by RIL.

On Tuesday counsel for RIL Mr Harish Salve, in course of his argument, said that RNRL has emphasised its arguments before court based on the family MoU, which has never been produced in the court. Therefore the onus is on the RNRL to produce the MoU in front of the court, he said.

Mr Salve citing from the earlier judgment in the case, said that the judge had observed that the MoU was binding on RIL. The judge has relied on the MoU document, which has been paraphrased from the submission of RNRL. Relying on the paraphrased document is an error on part of the judge. In principle the MoU is not binding on RIL, he said.

He said that RNRL has stressed upon the MoU at various points in the case but RNRL has never produced it in court. The MoU was not adopted by board members of RIL. It was RNRL’s duty to place the MoU in front of the board and approve it. The MoU was never placed in the public view, there is no evidence to suggest that the RIL’s board knew about it, he said.