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Govt will be party to RIL-RNRL gas dispute

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Express news service Posted: Oct 22, 2008 at 0214 hrs IST
Related Stories: RIL will reopen pumps if govt gives benefits
Mumbai, October 21: The Bombay High Court on Tuesday allowed the central Government to implead itself in the Reliance Industries-RNRL case on gas supply after the Anil Ambani group company Reliance Natural Resources Ltd said it did not have any objections to the government being a party in the matter.

According to sources, the government will file its say regarding the price, quantity and tenure of the power project.

Earlier, RNRL was opposed to allowing government to intervene on the ground that it did not have any legal standing and that the government could not play a role since the agreement was between the two brothers. Reliance Industries had already said they did not have any objection to government being made a party. Mukesh Ambani-led RIL and Anil Ambani's RNRL are locked in a dispute over terms of gas supply master agreement, whereby RIL is to supply gas for RNRL’s power projects.

Earlier, the division bench of Justice J N Patel and Justice K K Tated had said that it would like to finish the hearing before Diwali, so that judges could write the judgment during the vacation. But now with the government entry into the litigation, hearing may not get over before Diwali vacation.

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While RIL and RNRL are squabbling over the price of gas, government counsel had earlier endorsed RIL’s stand that price must have government's approval.

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