War of words intensifies between RIL, RNRL counsels

THE WAR of words between the counsels of Reliance Industries (RIL) and Reliance Natural Resources (RNRL) intensifies with the legal tussle over supply of gas drawing to an end.
    In the course of his arguments on Saturday in the Bombay High Court, RIL's senior counsel Harish Salve has held the RNRL counsel Ram Jethmalani responsible for closing the possibility of an out-of-court settlement between the companies by making "false and baseless allegations like fraud, dishonesty, breach of trust, cheating against RIL chairman Mukesh Ambani, a person managing the largest Indian corporate and globally respected."
    Earlier, Mr Jethmalani had submitted to the High Court that his client Anil Ambani was willing to resolve the issue out-of-court and for that, if required, he was ready to meet the RIL chairman "anytime, anywhere."
    Mr Salve told the High Court that he had to deal with each of the allegations made by Mr Jethmalani and he would need full five days for the same. The High Court has sanctioned half-day hearings for five days, beginning Monday. Mr Jethmalani continued firing his salvo against RIL and the government. Mr Jethmalani told ET, "This is the biggest corporate scam that the government is allowing to happen," pointing out to more than four-fold increase in capex by RIL for the development of the Krishna Godavari basin block from $2.47 billion. "The government is not protecting the interest of its own company, NTPC and instead, intervening in the RILRNRL case," said Mr Jethmalani.
    According to the RNRL counsel Mr Rohatgi, the government's share of gas from the KG basin would come down drastically if RIL is allowed to scale up capital investment. Under the production sharing contract, the investor (here RIL) is allowed to recover its capital investment before sharing profit with the government. Since the production is slated for nearly 17 years, a permission to allow RIL to scale up its investment would mean loss to the government.
    The RNRL counsel said the government may lose Rs 1,100 crore in first five years of gas production which is likely to go up to Rs 18,000 crore during the entire period of gas production, if RIL is allowed to increase its investment.
    RNRL counsels Mr Jethmalani and Mukul Rohatgi have completed their arguments in the long-pending case against RIL. RIL's senior counsel Mr Salve will file his rejoinder submission to appeals made by RNRL's counsels on Monday.