Govt rejects Ambani family gas pact

Rejecting the Ambani family agreement on gas, the government on Friday said a private pact cannot be allowed to threaten national interests and asked the Supreme Court to make it a party in the ongoing case between the group firms of Anil and Mukesh Ambani.

"A private dispute between the two parties and their alleged agreement (family MoU) cannot threaten the interests of other stakeholders that is the government in (Production Sharing) Contract.

"The MoU by its very nature is in contravention of the PSC, which both the signatory parties were aware of before entering into this agreement," the government said in its affidavit filed in response to cross-appeals by Anil-led RNRL and Mukesh Ambani-run RIL challenging the Bombay High Court ruling on their gas dispute.

After a bitter battle, the Ambani brothers had signed an MoU in June 2005 dividing the Reliance empire after their mother Kokilaben interevened and worked out a settlement.

Seeking a stay on the June 15 Bombay High Court order that asked RIL to supply gas to RNRL at $2.34 per mmBtu, which was 44 per cent lower than the government rate, the affidavit said it had failed to appreciate the PSC and could distort growth of gas market in the country.

Earlier in the day, RIL also filed an affidavit saying it had "no unfettered rights" in the quantity and price of gas and hence cannot give the same to RNRL without official nod.

RNRL had earlier said that RIL was trying to make the dispute seem one between it and the government, which it argued had no role in the issue.