Asserting its ownership over gas from KG-D6 fields, the government on Saturday hit at the Mukesh and Anil Ambani groups for “surreptiously” appropriating national resources, treating it as their personal and family property.

Anil Ambani group firm RNRL, on the other hand, in an affidavit accused the government of “blatantly and openly” supporting Mukesh-led RIL's “unlawful design” to wriggle out of its obligation to supply gas.

Seeking a stay on the June 15 Bombay High Court order on gas supply on the basis of a family agreement, the government said in a petition before the Supreme Court that the MoU between the Ambanis was “blatantly illegal” and in disregard to the provision of the Production Sharing Contract (PSC).

“(The MoU) should be declared null and void,” as it would mean that all the gas from the KG basin would be owned and utilised by RIL and RNRL, said the petition, a day after the Oil Ministry filed an affidavit in connection with cross- appeals by the gro up firms of the two Ambanis.

“Obviously, the pressing needs of the priority sectors...cannot be allowed to be held hostage to the benevolence and mercy of these two respondents,” the petition said, praying for continuation of sale of gas from KG basin to users other than RNRL.

In its earlier petition, RNRL wanted immediate supply of gas at $2.34 per mmBtu, which is 44 per cent less than the official rate, while RIL said it cannot supply fuel without the government's consent.

On the Petroleum Ministry's assertion that it had no knowledge of the private (family) agreement and that the MoU signed by the two Ambani groups was in contravention of the PSC, RNRL said that the Ministry had absolutely no role to play in the demerger and reorganisation of businesses of RIL.

“It is submitted that the scheme of demerger was sanctioned by the Bombay High Court on December 9, 2005 after the approval of creditors and lakhs of shareholders. The Ministry did not object to the scheme,” it said.

The scheme of demerger was based on the family agreement to divide the Reliance empire between Anil and Mukesh Ambani after their mother Kokilaben worked out a settlement.

Stating that the Bombay High Court judgement does not cause any prejudice to the government or its interest, the RNRL affidavit said: “The government's share of gas in PSC is fully protected... it is therefore submitted that the affidavit dated July 16, 2009 filed by the Petroleum Ministry should be struck off from the record.”

source: BL