By IANS,
New Delhi: The Supreme Court Tuesday commenced hearing the dispute over the supply and pricing of natural gas from the Krishna-Godavari basin that was awarded to Mukesh Ambani-led Reliance Industries.
The hearing by a three-member becnh comprising Chief Justice K.G. Balakrishnan, Justice R.V. Raveendran and Justice P. Sathasivam, will resume Wednesday.
The high profile legal battle is between Reliance Industries and Anil Ambani-led Reliance Natural Resources.
During the two-hour hearing, the benh asked the media to exercise restraint and said the observations by the justices were only intended to elicit the views of the contending counsels and should not be construed as an expression of their views.
The arguments by Reliance Industries counsel remained inconclusive and will resume Wednesday.
At the crux of the dispute is the supply of natural gas from the Krishna-Godavari basin, awarded for exploration and harnessing to Reliance Industries, before a split in 2005 in the group founded by legendary industrialist, the late Dhirubhai Ambani.
Based on a family reorganisation pact, the Anil Ambani Group wants 28 million units of gas per day for 17 years at $2.34 per unit. But Reliance Industries says it can only sell it for $4.20 per unit, claiming this was the price approved by the government.
The Bombay High Court had upheld the claim by younger brother Anil Ambani’s group in a verdict delivered in June, which was challenged by Reliance Industries in the apex court.
The government, too, has joined the dispute as an interested party, saying gas was the property of the state and cannot be fought over by two rival corporate houses.
This matter will also be taken up subsequently.