Gas pricing: Supreme Court asks Reliance to respond to CAG report over gas fields in KG Basin

The bench asked Reliance to respond to the report after a PIL petitioner NGO furnished the report.

Written by Utkarsh Anand | New Delhi | Published:January 16, 2015 3:15 pm
CAG, Reliance, KG-D6 basin, business news, indian express The CAG report had indicted Reliance on various counts while also pulling up the Oil Ministry over inconsistent parameters for expenditure estimation.

The Supreme Court on Friday gave Reliance six weeks’ time to respond to the 2014 report by the Comptroller and Auditor General (CAG) of India over gas extraction by the company in KG-D6 basin.

The CAG report had indicted Reliance on various counts while also pulling up the Oil Ministry over inconsistent parameters for expenditure estimation.

The bench asked Reliance to respond to the report after a PIL petitioner NGO furnished the report in the court and demanded an inquiry.

While fixing the matter in March, the court also gave the counsel for politician Gurudas Dasgupta, who is also a petitioner in the case, a liberty to challenge the new pricing formula brought into force by the NDA government.

The government said that the new gas pricing formula took care of all the issues raised in the petitions, which claimed that Reliance was sought to be benefitted by devising a formula that favoured doubling the gas prices.

The government also pointed out that two arbitration proceedings are already pending and hence the disputes should be allowed to be resolved in the appropriate proceedings.

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