Sunil Jain’s defence of Anil Ambani (‘Which PSC did the PM see?’, Aug 17) is strange.Mr Jain may be right that the contract between the two Ambani brothers is consistent with Reliance Industries Limited’s Production Sharing Contract with the government. But it is equally true that when contracts are not in the national interest, they are opened up by the government. The Enron contract was a valid legal document, duly signed by the state government in Maharashtra and counter-guaranteed by the central government in New Delhi. But the contract was one-sided and would have hurt the interests of both the state of Maharashtra and of the central government — and would have resulted in exorbitantly priced power for the country’s citizens. Surely it is not Jain’s case that a contract, no matter how flawed, has to be honoured?
Srinjoy Gupta, on email
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