Govt Has No Locus Standi

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[The Anil Ambani group firm RNRL on Saturday questioned the government's locus standi in challenging the Memorandum of Understanding to restructure Reliance Industries (RIL) after a family settlement was reached to divide the business empire between Mukesh and Anil. &quot;The MoU is between the promoters of RIL and Petroleum Ministry is not a party to the same. It has no locus to challenge any part of the MoU,&quot; RNRL counsel Mahesh Agarwal said on the petition filed by the government in the Supreme Court seeking to declare the MoU as null and void. Commenting on the contents of the Petroleum Ministry's petition and prayer, he said RIL as contractor is entitled to sell and deal with its share of gas under the Production Sharing Contract (PSC) and RNRL's claim is only from that share. &quot;The PSC explicitly permits contractor to sell gas to any person and RNRL has never questioned any of government's rights under PSC,&quot; he said. Asserting its ownership over gas from KG-D6 fields, the government said that the Mukesh and Anil Ambani groups were &quot;surreptiously&quot; appropriating national resources and treating it as their personal and family property. &quot;(The MoU) should be declared null and void,&quot; as it would mean that all the gas from the KG basin would be owned and utilised by RIL and RNRL, the petition said, a day after the Oil Ministry filed an affidavit in connection with cross- appeals by the group firms of the two Ambanis. In fast moving developments ahead of the hearing on cross appeals of RIL and RNRL on Monday before a bench headed by Chief Justice K G Balakrishnan, the government filed a special leave petition apparently to ensure that it is able to raise issues that were not touched by the High Court. Just before the government SLP, RNRL filed the affidavit, its second since Tuesday, seeking to strike off the affidavit filed by the Petroleum Ministry in the capacity of an interevener as named by RIL. The Bombay High Court judgement does not cause any prejudice to the government or its interest, the RNRL affidavit said and requested: &quot;It is therefore submitted that the affidavit dated July 16, 2009 filed by the Petroleum Ministry should be struck off from the record.&quot; RNRL claimed that the Oil Ministry was now seeking to &quot;reintroduce allegations, statements and averments that were withdrawn before the High Court&quot; and said that the Ministry for the first time has made a new plea that the price for the purpose of valuation of gas was the same as the sale price. The government petition said that under the PSC, gas was its property and RIL as contractor does not have rights to utilise the gas, which could be sold only at a price approved by the administration. &quot;Knowing fully well that the gas does not belong to them and that... (they) are bound by the terms of the PSC, the respondents (RIL and RNRL) have appropriated through MoU, in a surreptiouos and unauthorised manner, the entire gas, treating the same as their personal and family property.&quot; . Stating that any understanding arrived at between RIL and RNRL was not binding upon it, the Oil Ministry affidavit said that government was the sovereign owner of natural resources and has the rights to expeditious production of gas. Asserting that gas should be produced without any hindrance in public interest, the government said: &quot;The interim arrangement as approved by the High Court in the order dated January 30, 2009 may be permitted to continue.&quot; It also said that the High Court judgement be set aside with regard to the interpretation of the gas utilisation policy and provisions of the PSC and sought directions from the apex court that these two should prevail over any private arrangement or MoU. The goverment has valued the gas at USD 4.20 per mmBtu and as per its utilisation policy, fertiliser units get first priority in gas supply, followed by power sector. Yesterday, RIL filed an affidavit saying it had &quot;no unfettered rights&quot; in the quantity and price of gas and hence cannot give the same to RNRL without official nod. RNRL had in an affidavit on Tuesday said that RIL was trying to make the dispute seem one between it and the government, which it argued had no role in the issue. Already, some of the 35 companies, including GMR, GVK and Gautami Power that have been allocated gas by government from RIL as per the utilisation policy have approached the Supreme Court seeking to be made an intervener. (PTI)