Ambani gas dispute: Govt faces tough questions from SC

NEW DELHI: Lawyers representing the Indian government in the Ambani gas dispute case faced probing question from the Supreme Court on Wednesday.

The judges asked the government why it had not objected to the memorandum of understanding (MoU) signed between the members of the Ambani for sharing of gas from the Krishna-Godavari basin.

“Why did the government not object to the family agreement (MoU) and Gas Sharing Agreement (GSMA) when it came to know about it for the first time,” asked a bench comprising Chief Justice KG Balakrishnan, justice B Sudershan Reddy
and justice P Sathasivam.

The government lawyer, Additional Solicitor General Vivek Tankha, said the agreement for supply of gas from Reliance Industries (RIL) to Reliance Natural Resources (RNRL), which is referred to in the MoU as a ‘suitable arrangement,’ could not have been drafted without the consent of the government.

“What is a suitable agreement between them (RIL and RNRL) is not a suitable agreement for the national interest,” said Mr Tankha.

Mr Tankha presented a chart claiming the government will lose Rs 25,000 crore apart from leaving idle industrial infrastructure worth Rs 75,000 crore.

However, the court repeatedly asked whether these facts were presented before the High Court. The court also asked whether such facts have been mentioned in the government’s petition filed in the apex court.

“Show us from the record (Bombay High Court),” said Justice Reddy speaking for the bench.

Mr Tankha replied that the government had not been able to present these facts to the High Court. “The government had no occasion to present these facts before the high court as the division bench tried to superimpose the family agreement on the PSC signed between RIL and centre,” he said.

At this RNRL counsel Mr Ram Jethmalani said, according rules governing proceedings before the apex court, new facts are not be presented before the apex court if it is not part of record. But as this had happened, were being presented he should have the right to cross-examine the Oil Ministry officials for bringing new facts for the first time before the apex court.

Mr Jethmalani also mocked the government’s charts claiming they were designed to “help” RIL make a huge profit.

“That’s why I am saying that the officials of the MoPNG be presented for cross-examination. There is already enough corruption on record attempted by the government,” he said

The court will continue hearing the case on Thursday.