‘Mukesh unilaterally inked gas pact for both RIL and RNRL’ | business | Hindustan Times
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‘Mukesh unilaterally inked gas pact for both RIL and RNRL’

Anil Ambani-owned Reliance Natural Resources Limited today accused Mukesh Ambani of unilaterally signing Rs 1,00,000 crore worth gas supply agreement for both RIL and RNRL.

business Updated: Nov 26, 2009 21:39 IST
HT Correspondent

Raising fresh demands to cross-examine the minister of petroleum and natural gas and the ministry’s secretary, Anil Ambani-owned Reliance Natural Resources Limited (RNRL) on Thursday accused Mukesh Ambani of unilaterally signing Rs 1,00,000 crore worth gas supply agreement for both RIL and RNRL.

This, RNRL counsel Ram Jethmalani, said was illegal as the agreement was finalised while the process of de-merger was on. Anil Ambani was not a signatory to the deal as he had no powers at that time (change of regime).

Meanwhile, additional solicitor general Mohan Parasaran told the bench headed by Chief Justice K.G. Balakrishnan that the government affidavit was not ready as it required approval of three ministries.

Arguing for RNRL, Jethmalani said Reliance Industries Ltd had hurriedly convened a board meeting of RNRL on January 11 2006, six months after the memorandum of understanding was signed, to consider and approve various agreements with RNRL including the gas supply agreement. The meeting lasted for just five minutes.

The senior counsel claimed the notice of meeting was sent to his client just a day before and its proposed agenda was sent to ADAG few hours before the meeting.

“It was sent only after ADAG made a request to have the agenda copy,” said Jethmalani. He said the agreement was no as per the scheme approved by the Bombay High Court.

Jehtmalani argued RNRL as a resulting company came into existence only shares were issued on January 27, 2006 and management was transferred on February 7, 2006. However, the gas supply agreement was signed much earlier. Before RNRL came into existence RIL’s role was only as a trustee for Anil Ambani Group.

Reliance Natural Resources Limited’s objections to the agreement were rejected, Jethmalani told the court.

He added RNRL was not challenging to government policy but only its affect on the company’s rights to get gas from Reliance Industries.

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