RIL to R-Infra: We will not accept payment under protest
In addition to the ongoing legal battle between the Ambani brothers in the Supreme Court, the out of court arguments between the two sides over the issue of marketing margins goes on unabated.business Updated: Oct 26, 2009 20:53 IST
In addition to the ongoing legal battle between the Ambani brothers in the Supreme Court, the out of court arguments between the two sides over the issue of marketing margins goes on unabated.
In response to Anil Ambani -controlled Reliance Infrastructure’s (R-Infra) letter of October 24, wherein R-Infra termed the marketing margins being charged by Mukesh Ambani’s Reliance Industries Ltd (RIL) as “illegal, unauthorised and unwarranted”, RIL said in its October 25 letter, “We do not accept your contention that you are not obliged to pay the marketing margins for the reasons alleged by you.”
“Please note that all payments made by you will be appropriated towards the amount due and payable by you (R-Infra) to us (RIL) under the gas sales and purchase agreement (between RIL and R-Infra) and we will not recognise any payment as having been made under protest,” RIL told R-Infra.
RIL said it was resuming supplies to R-Infra’s Samalkot power plant in Andhra Pradesh only after the latter paid the amounts including the marketing margins as per the last invoice raised under the GSPA.
On its part, R-Infra has told RIL that its stand of not accepting the payment under protest and that supply of gas will be only if payment is made unconditionally “is highhanded and taking undue advantage of your (RIL’s) monopolistic position.”