Stock market responded swiftly to the judgement, with RIL shares shooting up by about five per cent to nearly Rs 1050 and that of RNRL tanked close to 20 per cent close to Rs 55.

“RIL does not have absolute right over gas and price is subject to government approval… Since MoU (of the Ambani family) has not been made public, it does not fall in the corporate domain… Under the Production Sharing Contract, it is for the government to evaluate the price of fuel,” Justice P Sathasivam said, reading out the verdict.

Within minutes, the government welcomed the verdict upholding its sovereign right on pricing and utilisation of gas.

“No matter what campaign one ran against the government, the nation is supreme” Oil Minister Murli Deora said without naming Anil Ambani group which had cast aspersions on his ministry for allegedly siding with Mukesh-led RIL.

The court also directed RIL to initiate negotiations with RNRL within six weeks to arrive at a sale agreement within the framework of government policy.

RNRL had contended that it was entitled to 28 mmscmd of gas a day from RIL’s eastern offshore KG-D6 fields, at $2.34 per mmBtu, a price 44 per cent lower than government approved rate of $4.20 per mmBtu.

Tags: case, reliance rnrl case, SC reliance Case

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