Kejriwal to file cases against Mukesh Ambani and Veerappa Moily
New Delhi: Delhi Chief Minister Arvind Kejriwal has said legal cases will be filed against billionaire Mukesh Ambani, Union Oil Minister Veerappa Moily and other policy-makers for colluding to inflate the prices of gas produced from the D6 block off the eastern coast. (Highlights: Kejriwal orders FIR against Moily, Mukesh Ambani over gas pricing)
Reliance Industries Limited, owned by Mr Ambani, sells gas to state-owned power producers and fertilizer plants.
"Today we have instructed the anti-corruption branch to file a criminal case against Murli Deora, FIRs against Veerappa Moily, VK Sibal, the (then) Director General of Hydrocarbons, Reliance Industries Ltd Chairman Mukesh Ambani and others," Mr Kejriwal said, declaring that Reliance was being allowed windfall illegitimate gains. (Watch)
The chief minister said that the alleged swindle was affecting gas prices in the capital, which is why his government is intervening in a deal struck between the Centre and Reliance.
The union government in December said that from April 1, Reliance can double the prices of gas that it produces from the D6 block off the Eastern Coast. Mr Kejriwal wants the Prime Minister to suspend that hike pending an enquiry.
Reacting to Mr Kejriwal's allegations, Oil Minister Veerappa Moily said,"Nothing is done without expert advice. If he can give (us) some money, we'll be happy to reduce prices."
Reliance, which operates the D6 block off the eastern coast, has reported a sharp decline in gas output since 2010. It has blamed geological complexities for the fall in output, but the oil regulator believes it failed to drill enough wells. (Read more...)
The government cleared the higher prices after Reliance offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output. more