The Union Government contended before the Supreme Court that it is the absolute owner of all the minerals in the country both under the sea as well as on the earth in the country, including the Natural Gas in Andhra Pradesh Krishna-Godavari Gas Basin which is the main bone of contention between two Ambani brothers.
Additional Solicitor General Mohan Parasaran appearing for the Union Government said Natural Gas found within 339 square kilometer area in Krishna-Godavari Gas Basin is not the private property of Mukesh Ambani’s RIL and elder Ambani brother has no authority to enter into any gas supply agreement or contract with any private party or person without the prior permission of Union Ministry for oil and petroleum.
The government also contended before a bench comprising Chief Justice K G Balakrishnan and Justices B Sudarashan Reddy and P Sathasivam that the family MoU between two Ambani brothers dated June 18, 2005 shall adversely affect the profit sharing contract between RIL and the government.
Senior counsel Ram Jethmalani who is appearing for Anil Ambani company RNRL has been alleging that the Union Government is colluding with Mukesh Ambani.
The two Ambani brothers are locked in a fierce legal battle for the fixation of rates of natural gas.
Anil Ambani wants gas at 2.34 dollar per unit while Mukesh Ambani is not prepared to provide gas below the rate of 4.2 dollar per unit.
The government also submitted before the court that the government will have to suffer a whopping loss of Rs 75,000 crore if the gas is supplied at the subsidised rate to RNRL and claimed that the petition filed by the Union Government in the Supreme Court is fully maintainable as the government has to look after the larger public interest as natural gas plays vital role in the production of power.
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