New Delhi: Government's controversial decision to raise the
price of natural gas reached the Supreme Court which today agreed to examine
the matter.
Taking up a PIL filed by CPI MP Gurudas Dasgupta, the court
issued notices to the Centre, Reliance Industries Ltd (RIL) and the Petroleum
Minister Veerappa Moiley.
The bench headed by Chief Justice P Sathasivam said that the
issue raised by the senior MP needs examination and the petition cannot be
rejected at the initial stage.
The apex court also sought response from BP Exploration
(Alpha) Limited, NIKO Resources Ltd and Ministry for Petroleum & Natural
Gas on a PIL filed by CPI MP Gurudas Dasgupta who alleged that no due diligence
was done by the government while increasing the price of natural gas.
The court directed the parties to file their response within
four weeks and posted the matter for further hearing to September 6.
The MP pleaded for a slew of directions including review of
Centre's decision to increase the price of natural gas from USD 4.2 per million
British thermal unit (mbtu) to USD 8.4 mbtu from April 1, 2014.
Senior advocate Colin Gonsalves, appearing for Dasgupta,
submitted that the decision to raise the price needs to be examined as the
Petroleum Minister has overruled the opinion of senior officers of the ministry
and his predecessor.
He also sought direction to RIL and NIKO to relinquish those
areas of the KG basin forthwith as are recommended by CAG in its report and
Centre to take possession of the area.
The petition alleged that Moily was stalling arbitration
proceedings against the RIL to recover a penalty of USD 1 billion from the firm
for allegedly violating contractual obligations in gas extraction in the
Krishna-Godavari basin.
The petition pleaded for appointment of a third arbitrator
(umpire) and expeditious completion of arbitration within 6 months.
Senior advocate Harish Salve, appearing for RIL, opposed the
petition and said that there is no point in "junking" arbitration
proceedings.
Dasgupta, in his petition, said that Moily was going against
the recommendations of the Directorate General of Hydrocarbons (DGH) and the
Comptroller and Auditor General (CAG) that the Mukesh Ambani-owned RIL should
surrender a part of the gas block allotted to it and pay additional penalties.
"It is therefore most respectfully prayed that this
Court may graciously be pleased to issue an order directing the respondents no.
1 to 3 (Centre, Moily, Petroleum Ministry), in addition to the order
disallowing cost recovery of USD 1 illion, to additionally and forthwith
disallow cost recovery for the period 2012-13 to the extent of USD 1.7 billion
and for the period 2013-14 to the extent of USD 2.4 billion," the petition
said.
It also said that CAG be asked to expeditiously complete
financial audits of the project costs and Cabinet Secretary be directed to
produce the entire record relating to the subject matter before the apex court.
The decision of the Petroleum Minister to overrule the CAG
and the Director General, Hydrocarbon and not insist on relinquishment is
illegal and malafide.
"All these decisions have been taken against the
national interest and for collateral gain....The minister has made up his mind
to overrule CAG and to provide windfall and unjustified gain to Reliance,"
the petition said.
Dasgupta submitted that he had filed a complaint to the PMO
on the issue but the prime minister did not take any decision on it and that he
was forced to approach the Supreme Court.
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