File FIR on 'gas price collusion' by ministers, RIL: Kejri to cops Mukesh Ambani, Moily, Deora Among Those Named

New Delhi: In a sudden move that has jolted the political and business establishments, the Arvind Kejriwal-led Delhi government on Tuesday directed its anti-corruption branch to file an FIR against oil minister Veerappa Moily, former oil minister Murli Deora, Reliance Industries Ltd boss Mukesh Ambani and the former director-general hydrocarbons V K Sibal under the Prevention of Corruption Act for hatching a “conspiracy” to double gas prices in order to benefit, in the main, RIL.      In a brief press conference in the morning, the Delhi CM announced this while describing the details mentioned in a complaint received by the Delhi government as “shocking” and “an assault on India’s economic sovereignty which amounted to anti-national activity”. He demanded that the central government put price hike of gas in abeyance till the time the probe into the matter is completed.      “We have always said that price rise and inflation are linked to corruption and this is an example. In case this price increase is allowed to take place, it will make the life of the common man miserable,” Kejriwal said.      The Delhi government’s intervention in this matter, against which a PIL is still pending in Supreme Court, raised eyebrows with experts questioning the local government’s jurisdiction.  Kejri doesn’t know how it works: Moily      Oil minister Veerappa Moily hit back at allegations made by CM Kejriwal, saying pricing of petroleum products was done as per expert advice. “I should sympathize with his ignorance. He should know how the government functions.”P 12  Charges baseless, shocking: RIL      Terming the move to register an FIR as “shocking”, RIL denied the charges and said it would pursue legal remedies. “The complaint and allegations are completely baseless and devoid of any merit or substance,” it said. P 13 AAP trains guns on Modi-Adani links      AAP leader Yogendra Yadav attacked Narendra Modi. “What is the exact relationship between Modi and the Adani Group? How has Adani become super rich in just 10 years? Why are BJP, Modi silent on gas pricing scam by Congress?”P 10 Kejriwal: AAP has powers as ‘offence’ committed in Delhi      Kejriwal claimed as the “offence” had taken place in the jurisdiction of Delhi it was well within the Delhi government’s powers to proceed against it.      The decision to order a probe, said Kejriwal, was taken after it received a complaint filed by former cabinet secretary T S R Subramanian, former Navy chief R H Tahiliani, former expenditure secretary E A S Sarma and Supreme Court lawyer Kamini Jaiswal.      The complaint pointed out that gas prices would be doubled from April 1 due to the alleged “active collusion” between RIL and some central ministers. In case this price hike is allowed, it would have a cascading effect on transport, domestic gas and electricity prices, thus affecting the common man.      Kejriwal claimed the impact of the hike would cost the country a minimum of Rs 54,500 crore every year, and in addition to this, he said, the central government had allowed RIL to make a future windfall profit of Rs 1.2 lakh crore by gold-plating its project.      In a press release, the Delhi government said that since the term of the UPA government was ending in four months, it should have left the decision to the next government and “this hurry shows a malafide intention of helping” RIL.      It claimed that the decision to hike the gas price from the existing $4.2 (Rs 262.25) per mmbtu (one million British Thermal Unit) to $8.4 (Rs 524.20) per mmbtu would make gas prices in India among the highest in the world. It also claimed that there was no attempt to determine the cost of production independently and accurately. There was also no explanation as to why when the entire domestic production is to be consumed internally, prices are being fixed in US dollars. The fluctuation in dollar rate will only lead to a further increase in gas prices.      Charging the UPA government with collusion with RIL, the statement said the Centre took no action against RIL for its deliberate drop in production and ignored the CAG report and the then solicitor general’s opinion (in May 2012), and on the contrary, accepted RIL's demand for doubling gas prices from April 1 this year.      The AAP government said that even if the Centre’s argument that new prices would bring in more investment in exploration were to be accepted, there was no justification for raising gas prices from existing fields. “The central government (particularly petroleum ministry) has connived with RIL to help it in making a windfall profit at the cost of common man,” it said. Kejriwal claimed that the cost of production of gas was less than $2.34 per mmbtu.      “The fact that RIL had signed long term agreements with NTPC and RNRL for supplying gas at that rate for 17 years would show it was making profits at that price. RIL’s partner NIKO has a 25 year contract with the Bangladesh government to supply gas at the rate of $ 2.34/ mmbtu,” he said.      “A letter from RIL to the director general hydrocarbons giving its cost calculations shows the cost of production is less than $1 per mmbtu. Then why did it seek a hike in gas prices and why did the central government agree to it?” he asked.