RIL bound to supply gas to us: Anil Ambani firm

New Delhi: Anil Ambani group firm Reliance Natural Resources Ltd (RNRL) on Wednesday told the Supreme Court that Reliance Industries Ltd (RIL), belonging to elder brother Mukesh Ambani, was under a binding obligation to supply gas to it.

In an affidavit filed in the apex court registry, RNRL also contended that the government had no role to play either in the utilisation or the fixing of gas price as per its contract with RIL.

"It is submitted that the RIL has made valid, binding and enforceable commitment in the year 2005 to supply gas on the agreed terms to RNRL," the company said in its reply to the RIL lawsuit challenging the Bombay High Court ruling on gas supply row between the energy firms of the Ambani brothers.

"RIL has complete marketing freedom for sale of gas within India," the RNRL reply said, contending that the government has no role to play either in the utilization or the fixation of gas price as per its contract with RIL.

"The marketing freedom would include within its scope the freedom to sell the gas on such terms and at such price that RIL deems fit and proper."

RNRL said government approval is required for valuation and not sale price.

It also said it has not questioned the government's ownership of the gas.

"RNRL has never questioned the ownership of the union of India over the underground reservoir under Article 297 of the Constitution of India," the company said, adding that RIL, however, was "committed to supply gas that belongs to it".

RNRL also asserted that RIL has been changing its stance with regard to the family agreement when the Ambani empire was split between the brothers.

Detailing RIL's response on different occasions, RNRL said "this fully exposes RIL's blatant lie and falsehood".

The Bombay High Court June 15 ruled said RIL should provide 28 million cubic metres of gas per day to RNRL at $2.34 per unit, and that they should sign a necessary agreement regarding this within a month.

RIL, however, is pleading that it was only a contractor for the gas from the Krishna-Godavari basin's D6 block and did not have the power to fix the price, while the government also moved a special leave petition asserting its right on pricing and distribution of natural gas.

The apex court has decided to commence hearing on this matter on October 20.