Mukesh fields directors in SC

New Delhi, Oct. 6: Escalating the Ambani gas battle, the directors of Mr Mukesh Ambani-led RIL on Tuesday separately told the Supreme Court that the board had not approved the family MoU, which divides gas between companies run by the two brothers.
In identical affidavits, the seven full-time members of RIL board said it was not true that the board had “accepted and approved the contents of the memorandum of understanding (between Mr Mukesh and Mr Anil Ambani) dated June 18, 2005.”
While making it clear that the scheme of demerger, dividing the Reliance empire between the two Ambani brothers, was approved by the RIL board, they said the family MoU was not placed before them.
The affidavits have added a new twist to the gas battle, final hearing on which is to commence from October 20. The firms run by the brothers’ moved the apex court after the Bombay High Court directed RIL to supply gas to RNRL at $2.34 per mmBtu.
The MoU, negotiated by mother, Ms Kokilaben, provided for natural gas from RIL’s KG-D6 and other fields being divided among firms run by Mr Mukesh and Mr Anil in 60:40 ratio.
The gas to Mr Anil Ambani’s firm RNRL was to be supplied at $2.34 per mmBtu, a rate that is 44 per cent lower than the price government approved for KG-D6 gas in 2007.
The Anil Ambani group firm, RNRL, meanwhile, alleged that the director-general of hydrocarbons, Mr V.K. Sibal, was acting at the behest of RIL and sought intervention of the Supreme Court.