MUMBAI, July 19 - The Indian government has stepped into the simmering legal dispute between the billionaire Ambani brothers, seeking to challenge the validity of a gas supply agreement they are arguing over in court, newspapers reported on Sunday.
The latest tussle between the feuding brothers, which stems from the 2005 break-up of the Reliance empire built by their father, has raised concerns it could discourage investment in the sector as India scrambles to shore up its energy security.
Reliance Industries (RELI.BO), controlled by Mukesh Ambani, and Reliance Natural Resources (RENR.BO), headed by estranged younger brother Anil, have been contesting the details of the gas pact, and the Supreme Court is due to hear the case on Monday.
The Times of India said the government had filed a special leave petition to argue that the pact made it appear that "all the gas will be owned by Reliance Industries and Reliance Natural and utilised at their discretion".
"Obviously, the pressing needs of the priority sectors of the national economy cannot be allowed to be held hostage to the benevolence and mercy of Reliance Industries and Reliance Natural," the Times of India quoted the government as saying.
The petition will enable the government to challenge the arguments put forward by both companies and moves it closer to the position of Reliance Industries, the Economic Times reported.
Last month, Reliance Industries was told by the Bombay High Court to supply gas to Reliance Natural at nearly half the price it had set in an interim ruling at the beginning of the year.
The gas in dispute comes from the vast Krishna Godavari (KG) basin, and some in India have said terms of access to such a crucial resource in an energy-starved country should not be left in private hands. [ID:nBOM453401]
In April, Reliance Industries started pumping natural gas from its massive deep-sea field in the Bay of Bengal, which at full throttle will nearly double India's gas output.
The latest tussle between the feuding brothers, which stems from the 2005 break-up of the Reliance empire built by their father, has raised concerns it could discourage investment in the sector as India scrambles to shore up its energy security.
Reliance Industries (RELI.BO), controlled by Mukesh Ambani, and Reliance Natural Resources (RENR.BO), headed by estranged younger brother Anil, have been contesting the details of the gas pact, and the Supreme Court is due to hear the case on Monday.
The Times of India said the government had filed a special leave petition to argue that the pact made it appear that "all the gas will be owned by Reliance Industries and Reliance Natural and utilised at their discretion".
"Obviously, the pressing needs of the priority sectors of the national economy cannot be allowed to be held hostage to the benevolence and mercy of Reliance Industries and Reliance Natural," the Times of India quoted the government as saying.
The petition will enable the government to challenge the arguments put forward by both companies and moves it closer to the position of Reliance Industries, the Economic Times reported.
Last month, Reliance Industries was told by the Bombay High Court to supply gas to Reliance Natural at nearly half the price it had set in an interim ruling at the beginning of the year.
The gas in dispute comes from the vast Krishna Godavari (KG) basin, and some in India have said terms of access to such a crucial resource in an energy-starved country should not be left in private hands. [ID:nBOM453401]
In April, Reliance Industries started pumping natural gas from its massive deep-sea field in the Bay of Bengal, which at full throttle will nearly double India's gas output.
