Supreme court will once again look at this case after 6 weeks. Ball is now in Government to decide on price in consultation. RIL is in green in weak market while RNRL crashed. Family MoU has no standing on national assets. Both RIL and RNRL are listed companies on both NSE and BSE. Anil Ambani attended to hear this crucial judgement.  Judges on bench: Chief Justice, KG Balakrishnan, Justice P Sathasivam and Justice B Sudershan Reddy. KG Basin gas row is one of the biggest battles in the history of Indian corporate history. KG Gas basin in located near Kakinada town in Andhra Pradesh. Reliance Industries of Makesh Ambani found huge gas reserves in Krishna Godavari basin. As per family agreement, RIL needs to supply 28 mmscd gas from D6 block for 17 years to RNRL at 2.34 dollars per unit. But, Government thought that that price was too low. RIL decided to hike gas supply rate to $4.2 per unit. RNRL went to court citing that it is violation of agreeemnt and it will affect its business plans. Government's argument: KG basin gas is a national asset. Price should be fair.  RNRL argument: RIL should respect family agreement. Hike in price will affect its business plans.  RIL argument: I am a contractor. Gas is a national property. Company needs to follow government orders as RIL is just a contractor.    … [Read more...]