Gas row: Anil Ambani accepts SC verdict, rules out review petition

Last Updated: Friday, May 07, 2010, 15:45

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Tags: Anil Ambani, SC verdict, RIL

Gas row: Anil Ambani accepts SC verdict, rules out review petition

Zeebiz Bureau

New Delhi: Reliance-Ani Dhirubhai Ambani Group (R-ADAG) chairman Anil Ambani Friday said he accepted the Supreme Court verdict that rejected cheap gas to group firm RNRL from Mukesh Ambani-led RIL, and ruled out filing review petition against the judgement.

“We respect the judgement of the Supreme; we note that SC has safeguarded interest of over 25 lakh RNRL shareholders by giving guidelines for gas supply agreement,” Anil Ambani said in a conference call hours after the apex court delivered its verdict over the four-year long gas row between the billionaire brothers.

"RNRL looks forward to an expeditious and successful renegotiation with RIL within the stipulated period of six weeks to secure gas supply for the group's power plants in line with the Supreme Court order," Ambani said.

In the dispute, where RNRL sought gas at a concessional price of USD 2.34 per mmBtu as against the government approved USD 4.20 per mmBtu, the Supreme Court said the government has the last word on pricing and usage.

It also asked RIL and RNRL to renegotiate gas supply terms within six weeks.

"RNRL has currently no plans to file a review petition in the Supreme Court," Ambani said.

Anil Ambani, who left the court without taking any questions from reporters after the judgement was pronounced, said the court has safeguarded the interests of 25 lakh shareholders of RNRL by issuing guidelines for expeditious finalisation of gas supply agreement.

"By a majority judgement, the Supreme Court has upheld RNRL's case that the company petition filed by RNRL as maintainable and has upheld the powers of the court to modify the scheme and make it workable," he said.

Ambani said the apex court has also acknowledged that the June 18, 2005 MoU was basis for the business reorganisation of RIL.

"The court has also directed that suitable arrangements for gas supply should not only be suitable to RIL but also the shareholders of RNRL, whose interests have to be fully protected," he said.

RNRL is seeking 28 mmscmd of gas from RIL's KG-D6 fields for group firm Reliance Power's proposed power plant in Dadri, Uttar Pradesh.

Anil Ambani further said Reliance Power, a R-ADAG company, is committed to emerging as the largest power producer in the country.

With agency inputs

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First Published: Friday, May 07, 2010, 15:45

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Sam - pune
i agree that huge no of companies are there to invest and gain in exchange but who knows if indian investors doesnot support stocks like same, all left faith on rnrl then all the stocks will behave like this in coming days.

i mean see the figures- when anil ambani was on conference call with cnbc the prices gone up to 54.45 or more than that but the time he says he won`t be applying for a review prices dropped like anything, i believe if anil wud have said -> ``ohh we got another new prospect for supply of gas and we are going to have that recently``, then the scene wud have been changed a lot like the prices wud hv shored like 58-60. while investors expect the company to say reveal the truth, they are not ready to accept it by providing support to company and keeping the momentum a halt.

lets hope mr. anil comes with new plans and some relief to people who has hold the stocks with faith on him, otherwise there is no chance that indian investors will support adag neither the downfall.

i personally booked huge profit today but still i again bought the share with all the profit plus invested amount with a higher range and i am going to have those for now. if the price wud go down again i will buy and make average and trust me we are going to book huge profit in this way.

all this is my personal opinion by consulting several inevstors, broker houses like karvy , ventura, sharekhan,icicidirect, angel broking etc and talk with some of the zeenews experts.

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Sam - pune
the scene has lasted for months and not over yet, another 8 weeks or more may be. but public shud understand that rnrl has not started it`s operations fully yet with all the power plants yet to supply power and investors gaveup on a single news leaving indian market fall like hell. obviously all are in market for money still need to think if mkt won`t be there where they will invest. it`s the simple funda like grow a chicken to have eggs not make it biriyani for 1 time.

just imagine, it wud have been more worst if rnrl was in full operation and ril stopped the supply, stopping all the operations as of now. but it`s not happened, it`s a judgement only.

ambanis are bigguns and only reliance group (combined) manage the share market to some extent so how they will not come up with a good plan.

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K.Venugopal - Mumbai
if the family agreement, the worth of which the supreme court has not invalidated, has agreed to a lower price for gas, then why does the government come into the picture with a higher price? at a lower price the public at large would be the gainers while the producer does not loose out, only the margin of profit is reduced. therefore the government is being tyrannical in imposing a higher price only to increase its margin of profit - profit which ideally would have gone into the developmental kitty of the country but in reality is likely to be apportioned by corrupt bureaucrats and politicians. anil ambani must file a review petition challenging the government’s arbitrary price hike on gas at a time when the nation is already reeling under price hikes in all segments of the economy.

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brajesh hingar - mira road
finally a good judgement for both the companies and for india

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kilashchandrapati - bbsr
we know anilambani is the fifth largest richest person of india . he built the company named reliance . reliance has many sector like oil is one of them . to know the country situation he should help to decrease in oil price . as a indain man he should does this .

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Y.Sunil - Hyderabada
its a really great pleasure, that in a very short period the problem is being cleared. by the grace of god six weeks is a good period for both the brothers. i would say that power projects will play a very big role, if this things are cleared as soon as possible. hoping india to be developed more brighter and brighter, let this brother unite and bring more glory to the nation. wishing best luck to both of them

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looker -
it was expected that sc would favour mukesh as he belongs to cong camp . he was the one who funded cong to buy sp support (thru amar singh ) to save upa govt when cpm withdrew support in 2009. as a return gesture cong fixed a higher gas price to benefit mukesh ...how murky politics is , all selfish interests are fulfilled at the cost of national interest ..