The war between the two Ambani brothers escalated on Tuesday with the younger brother Anil accusing his brother Mukesh’s Reliance Industries (RIL) of thwarting all efforts to resolve the dispute over the supply of natural gas.
“We tried with utmost sincerity to negotiate with RIL, but all our efforts were thwarted because RIL simply doesn't want to honour its contractual obligations,” Anil Ambani told RNRL shareholders at the AGM. “Even last month, we once again offered to sit down with the RIL and find a solution, but RIL has adamantly and publicly refused to go for any out of the court settlement.” Anil said.
The Bombay High Court is set to begin next round of hearing on September 30. The dispute is over oil and gas assets from KG basin. RIL officials declined comment citing the matter was sub judice.
Taking a dig at the ministry of petroleum and natural gas, Ambani said while for two years it did not think it necessary to intervene, it suddenly filed an affidavit in the court. “It is anyone’s guess what prompted the ministry’s belated intervention.”
Criticising RIL on its huge capital expenditure plans, Anil Ambani said the dramatic increases in capital expenditure by RIL would potentially cause the government a loss of well over Rs 40,000 crore. “The government can earn only Rs 1,000 crore in revenues from gas produced from KG basin compared to Rs 20,000 crore for RIL over a period of five years,” Ambani said.
{{/usCountry}}Criticising RIL on its huge capital expenditure plans, Anil Ambani said the dramatic increases in capital expenditure by RIL would potentially cause the government a loss of well over Rs 40,000 crore. “The government can earn only Rs 1,000 crore in revenues from gas produced from KG basin compared to Rs 20,000 crore for RIL over a period of five years,” Ambani said.
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