The Supeme court has issed notices to the central government,
Reliance Industries Ltd and Oil. Minister Veerappa Moily on a
petition that challenges the cabinet decision to raise natural gas
price and seeks a bigger financial penalty on RIL for alleged
suppression of gas output in anticipation of higher prices.
The apex court bench headed by Chief Justice P.Sathasivam,Ranjana
Desai and Ranjan Gogoi.on 29th July heard the petition filed by
CPI MP Gurudas Das Gupta and former power secretary E A S
Sarma.
Dasgupta had earlier written to. Prime Minister Manmohan Singh
against the cabinet decision to raise the gas price from the current
$4.2 per unit to $8.4 next April.
The Chief Justice has said “We can”t dismiss the assertions made by
a senior member of paliament in limeline and. We will examine the
reliefs”
The petition against the government as well as RIL”s partners BPA &
Niko Resources seeks an addiitional penalty of $1 billion on the
stakeholders in the KG-D6 Block.When Jaipal Reddy was the oil
Minister,he had withheld recovery of $1 billion of field-development
costs saying the relatively small quantity of gas produced did not
justify the expenditure.