Mukesh Ambani firm RIL told the Supreme Court that the family MoU of 2005 was irrelevant for arriving at a suitable arrangement for the supply of gas to brother Anil Ambani's RNRL.

On its part, RNRL filed a fresh affidavit before a bench headed by Chief Justice K G Balakrishnan, accusing the government of changing its stand on the gas row.

Continuing his arguments in the high-voltage case, RIL's counsel Harish Salve contended that for arriving at a suitable arrangement, the family MoU was irrelevant and the price of the gas has to be approved by the government.

However, RNRL in its affidavit objected to the involvement of Government in the gas dispute and alleged that the stand of the Ministry of Petroleum and Natural Gas was "dishonest and collusive."

RNRL opposed the stand of RIL that the supply of gas from K G Basin at US dollars 2.34 per mmBtu was not feasible. It also questioned the increase in the capital expenditure (Capex) approval by the government to RIL from Rs 10,000 crore to Rs 36,000 crore for enhancing gas production from 40 to 80 mmscmd.

RNRL said the approval by the managing committee, including Director General of Hydrocarbons V K Sibal, for the increased Capex was under CBI investigation.

"It is thus evident that even RIL's inflated Capex will result in a per mmBtu cost of 1.28 dollars. RIL is, thus, making tremendous profit even at US dollars 2.34," the affidavit stated, adding the fertiliser and power industries which are reeling under recession can ill afford to pay a higher price to fill RIL's pockets.