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Arvind Kejriwal takes on RIL - Key accusations

Last Updated: Thursday, November 1, 2012 - 11:20

Zeebiz Bureau

New Delhi: India Against Corruption (IAC) has taken on Mukesh Ambani’s Reliance Industries Limited (RIL) and alleged that successive governments had favoured his company by doling out gas exploration contracts in KG Basin and concessions, leading to a huge loss to the exchequer.

Key Accusations

1. IAC alleged that Reliance was "blackmailing" the government to increase the price of gas by "almost stopping" the production and indulging in "hoarding like petty traders".

2. IAC questioned as to why Prime Minister Manmohan Singh did not seek the opinion of the Attorney General when the then Petroleum Minister Manishankar Aiyar "refused to give in" to Reliance' demand for increasing the price of gas from USD 2.34 per unit to USD 4.2 per unit in 2006.

3. IAC said both BJP and Congress (are) involved. BJP signed a sweet deal with RIL in 2000. Congress faithfully implemented it.

4. IAC cited purported conversations between corporate lobbyist Niira Radia and A B Vajpayee's foster son-in-law Ranjan Bhattacharya to say that Ambani had claimed that Congress was under his control.

5. IAC said, Reliance Industries Ltd (RIL) has the contract to extract oil from KG Basin. Under an agreement of 2009 with the government, they are supposed to sell gas at USD 4.2 per mmBTU upto 31st March 2014. Midway now, RIL is demanding that the price be increased to USD 14.2 per mmBTU. Jaipal Reddy resisted that and he was thrown out.

6. IAC said, if RIL demand of increasing the gas price to USD 14.2 is accepted, it would lead to shut down of several gas based power plants and increase in power and fertilizer prices. It would result in Rs 43,000 crores of additional benefits to RIL.

First Published: Thursday, November 1, 2012 - 10:34
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