New Delhi: Anil Ambani-led RNRL today
alleged in the Supreme Court that Mukesh Ambani Group RIL
played a "fraud" by coming out with a complex formula on gas
pricing to artificially enhance its rate.
Describing the formula submitted by RIL as a "broad
day light robbery", RNRL contended that gas was to be made
available at a reasonable price for the consumption of
domestic market.
Senior advocate Ram Jethmalani, appearing for the Anil
Ambani Group, said the contract signed between RIL and RNRL
envisaged that the gas was to be supplied at USD 2.34 per unit
and government policy on gas utilisation and pricing was not
applicable in the dispute.
"The role of the Government is only to undertake the
valuation of the gas and not to determine the price. Price is
to be determined as per the contract between RIL and RNRL," he
said before a Bench headed by Chief Justice K G Balakrishnan.
"The mischief arose when RIL produced a complex
formula for valuation and did not mention the price in dollars
or rupees but a formula that came under attack from the high
powered economic advisory committee," the senior advocate
said.
"Fraud has been committed in giving approval to the
complex pricing policy," Jethmalani said before the Bench,
also comprising Justices B Sudershan Reddy and P Sathasivam.
"The complex formula was put by the RIL to
artificially raise the price to USD 4.20 per unit (from USD
2.34) which is contrary to public interest. We need cheap gas
for power and fertilizer plants," he said.
PTI
First Published: Tuesday, December 01, 2009, 23:29