SC posts Ambani hearing for Wednesday

SC adjourned the matter for further hearing on Wednesday when RIL would continue arguments.

The Supreme Court commenced hearing on the Ambani gas dispute and adjourned the matter for further hearing on Wednesday when Reliance Industries would continue its arguments.

A bench headed by Chief Justice K G Balakrishnan also said it would consider admissibility of petitions by the government and others later.

Mukesh Ambani-led RIL was represented by senior counsel Harish Salve.

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The case pertains to Anil Ambani group firm RNRL’s demand that it be supplied natural gas from RIL’s KG-D6 gas fields at a price of USD 2.34 per mmBtu agreed in a 2005 family MoU.

RIL contends that it cannot do so as the rate approved by the government for the gas was USD 4.2 per mmBtu and selling fuel below that price would not yield profits.

RNRL is seeking a minimum 28 million standard cubic meters per day,or more than one-third of the peak output from RIL’s KG-D6 fields,for a period of 17 years.

The two parties approached the Supreme Court following a Bombay High Court ruling on June 15,where RIL was asked to honour the 2005 family settlement agreement.

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The government has also sought to become party to the dispute and has contended that national resources cannot be appropriated through private family arrangements and it alone holds the right to approve rates and decide on customers keeping national priorities in mind.