Mukesh Ambani-promoted Reliance Industries (RIL) is expected to make a submission in the Bombay High Court on Tuesday with regard to presenting the June 2005 memorandum of understanding (MoU) in the court.
"After the RNRL counsel finishes arguing on Tuesday, we will make our submissions in the court if the MoU should be produced or not," said Milind Sathe, senior counsel for RIL.
The case was last heard on September 2, when RNRL senior counsel Mukul Rohatgi requested the court to call for the June 2005 MoU – signed between the warring Ambani brothers that formed the basis for separation of undivided Reliance Industries between them.
"We would like to know what the MoU contains as far as the GSMA (Gas Supply Master Agreement) is concerned. We would not want to see the entire MoU," the court had observed on September 2.
RIL counsel Milind Sathe had asked RNRL to file an application in the court regarding production of the MoU, adding, "The MoU is not binding on the companies. It is unknown to the law," Sathe had added. However, while presenting his case in July 2008, Harish Salve, senior counsel for RIL, had dubbed the agreement between the brothers as a 'ghost MoU' (as no one has seen it).
"The MoU between the brothers is in the private domain and has never been produced in the court. Agreements between the brothers were entered into on the basis of negotiation and decision on the case cannot be taken on this basis," Salve had told a division bench in July this year.
The June 2005 agreement between the Ambani brothers was the basis for the split in the Reliance Group. While Mukesh Ambani got RIL, younger brother Anil Ambani got Reliance Capital, Reliance Communications and Reliance Energy.
According to the June agreement, 28 million cubic metres of gas per day from RIL's KG basin fields would be allocated to Reliance Energy for its upcoming power plants at a price of $ 2.34 per mmBtu. It would also be allotted another 12 million cubic metres of gas if an earlier agreement between RIL and power major NTPC falls through. Besides, the ADA Group will have the first right of over 40 per cent of all future gas discoveries made by RIL.