In what could be a severe blow to Anil Ambani group seeking cheap gas from elder brother Mukesh-led Reliance Industries Ltd, the Supreme Court on Friday ruled that the government has the last word on pricing and utilisation of national asset.Giving its verdict on the four-year-old Ambani battle that was intertwined with a bitter public wrangling, a three-judge bench of the court headed by Chief Justice K G Balakrishnan said the Ambani family memorandum of understanding (MoU) dividing the gas was not binding, both legally as well as technically.
This would effect RIL-NTPC case because it is a precedent for the NTPC: this judgement itself is something that the court will consider while looking at the NTPC case and NTPC was a completely different situation. It was a tender won fair and square where RIL bid for the gas and it bid at the lowest price. It was not a result of some division of the bounties of whatever it was — it was clearly a tenable bid. So it looks like the NTPC judgement in this case would be influence certainly by this judgement.
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