Mukesh Ambani-led Reliance Industries Limited (RIL) on Thursday told the Supreme Court that the government might even undo the judicial verdict, holding that it has no power to regulate the gas price as per the terms of Production Sharing Agreement (PSC) with RIL.
RIL counsel Harish Salve made this assertion before a bench headed by chief justice K.G. Balakrishnan in his counter arguments in response to Anil Ambani led Reliance Natural Resources Limited (RNRL).
Salve made the assertion while arguing that government has complete power to regulate the gas price as per the PSC provisions and Gas Utilisation Policy (GUP).
“If I challenge the GUP and the court says that sorry you do not have the power (to regulate the gas price) the government will discover the power elsewhere, may be from Essential Commodities Act,” Salve told the bench.
He added he wasn’t challenging the GUP because if he pushed the “government of India in a corner, they would force him out of business.”
“He is right there,” said Salve adding “the government is opening various sectors to private players and if we do behave responsibly, we may earn profit for 15 days but will eventually be out of business.”
While asserting that government has absolute right to regulate the gas price, Salve refuted RNRL’s concept of “suitable bankable agreement” on gas supply with RIL.