At the centre of the fight is natural gas. Anil wants elder brother Mukesh-led RIL to supply the 28 mmscmd industrial fuel to his group firm RNRL at US$ 2.34 per mmBtu as committed in an agreement that split the Reliance business empire in June 2005.
RIL says it can’t fix the price without the government’s consent, much less sell it to whom it wants, although the Bombay High Court ordered it to tie-up supplies with RNRL after mutually agreeing to the terms.
The government, on the other hand, wants the Bombay High Court order set aside and the part of the Ambani family MoU pertaining to gas declared null and void. This because the government feels it is the owner of gas and it alone can fix the price and decide its utility.
Even as the court was making up its mind on the issue, the stakeholders couldn’t wait to slug it out outside the legal corridors. Anil Ambani turned the pressure on the government with his allegations that petroleum ministry (particularly minister Murli Deora) was siding with the Mukesh camp, causing much embarrassment to the government.
Incidentally, the government has since revised its petition on the gas dispute before the Supreme Court, restricting its prayer to that part of the MoU pertaining to gas. Earlier, it had asked the court for a direction to declare the Ambani family agreement null and void.
It was Kokilaben who oversaw the division of the Reliance empire in 2005, two years after the differences between the two brothers became public. The family split agreement provided for RNRL to get 28 mmscmd of gas at US$ 2.34 per million metric British thermal units for 17 years. But this plan was frustrated after the government fixed US$ 4.2 per mmBtu as the benchmark gas price — which Anil later alleged was done to help Mukesh renege on RIL’s commitment to supply gas to his group firm.
At another level, the Samajwadi Party, whose president Mulayam Singh Yadav is considered close to Anil, brought Lok Sabha to a halt thrice on July 29, demanding the resignation of Deora for his role in the Ambani brothers’ gas dispute.
Key Points
• Anil wants elder brother Mukesh-led RIL to supply the 28 mmscmd industrial fuel to his group firm RNRL at US$2.34 per mmBtu
• RIL says it can’t fix the price without the government’s consent. Government feels it is the owner of gas
• Petroleum ministry siding with the Mukesh camp, alleges Anil
• Anil expresses “Sadness… that today, gas produced by RIL was flowing to others, before it could be used within the group”; “unfortunately, in the pursuit of corporate greed, RIL has even forgotten the vision of the founder chairman (late Dhirubhai Ambani)!”
RIL says it can’t fix the price without the government’s consent, much less sell it to whom it wants, although the Bombay High Court ordered it to tie-up supplies with RNRL after mutually agreeing to the terms.
The government, on the other hand, wants the Bombay High Court order set aside and the part of the Ambani family MoU pertaining to gas declared null and void. This because the government feels it is the owner of gas and it alone can fix the price and decide its utility.
Even as the court was making up its mind on the issue, the stakeholders couldn’t wait to slug it out outside the legal corridors. Anil Ambani turned the pressure on the government with his allegations that petroleum ministry (particularly minister Murli Deora) was siding with the Mukesh camp, causing much embarrassment to the government.
Incidentally, the government has since revised its petition on the gas dispute before the Supreme Court, restricting its prayer to that part of the MoU pertaining to gas. Earlier, it had asked the court for a direction to declare the Ambani family agreement null and void.
It was Kokilaben who oversaw the division of the Reliance empire in 2005, two years after the differences between the two brothers became public. The family split agreement provided for RNRL to get 28 mmscmd of gas at US$ 2.34 per million metric British thermal units for 17 years. But this plan was frustrated after the government fixed US$ 4.2 per mmBtu as the benchmark gas price — which Anil later alleged was done to help Mukesh renege on RIL’s commitment to supply gas to his group firm.
At another level, the Samajwadi Party, whose president Mulayam Singh Yadav is considered close to Anil, brought Lok Sabha to a halt thrice on July 29, demanding the resignation of Deora for his role in the Ambani brothers’ gas dispute.
Key Points
• Anil wants elder brother Mukesh-led RIL to supply the 28 mmscmd industrial fuel to his group firm RNRL at US$2.34 per mmBtu
• RIL says it can’t fix the price without the government’s consent. Government feels it is the owner of gas
• Petroleum ministry siding with the Mukesh camp, alleges Anil
• Anil expresses “Sadness… that today, gas produced by RIL was flowing to others, before it could be used within the group”; “unfortunately, in the pursuit of corporate greed, RIL has even forgotten the vision of the founder chairman (late Dhirubhai Ambani)!”
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