The petroleum ministry on Saturday filed a special leave petition (SLP) in the Supreme Court seeking a direction to declare as null and void the MoU between the Ambani brothers on demerger scheme reached in June 2005. The government application, which hit out at the Mukesh and Anil Ambani groups for ?surreptiously? appropriating national resources and ?treating it as their personal and family property?, sought a direction to the effect that its gas utilisation policy and production sharing contract (PSC) would prevail over any private arrangement or MoU.

The petition, which makes Reliance Industries Ltd (RIL) and Reliance Natural Resources (RNRL) respondents, comes a day after the Centre filed an affidavit in the apex court on the cross appeals filed by RIL and RNRL against the Bombay High Court order of June 15 saying it should be made a respondent in the case.

Just before the government moved its petition, RNRL filed its second affidavit saying the government?s affidavit on Friday was aimed at expanding its role and file pleadings that was not permissible to an intervener. It also accused the government of ?blatantly and openly? supporting Mukesh-led RIL?s ?unlawful design? to wriggle out of its obligation to supply gas.

The ministry?s SLP comes in the backdrop of a debate about the role the government could play as interevener or a respondent in the ongoing case and the latest move would enable it to take up issues not touched in the High Court ruling.

In Saturday?s petition, the petroleum ministry also sought a stay on the High Court judgement that asked RIL to supply 28 million metric standard cubic meter per day (mmscmd) of K-G D6 gas to RNRL at $2.34 per mmbtu after mutually working out the modalities. The petition also sought quashing of the interpretation of the June 15 ruling that relates to gas utilisation policy and the PSC. The government submitted that the interim arrangement as approved by the Bombay High Court in its January 20, 2009 order be permitted to continue. The arrangement relates to allowing RIL to enter into contracts for sale of gas to parties other than RNRL.

The petroleum ministry argued that gas under PSC was the Centre?s property and the contractor had certain rights and obligations under the PSC. ?The gas has to be sold at a price ? approved by the GoI. Knowing fully well that gas does not belong to them ? the respondents have appropriated, through the MoU, in a surreptitious and unauthorised manner, the entire gas treating the same as their personal and family property.

The MoU ? is blatantly illegal and in this disregard of the provisions of the PSC and should be declared null and void.?

The goverment had valued the gas at $4.20 per mmbtu and has stipulated that fertiliser units get the first supply, followed by the power sector.

Terming the SLP as an unexpected development, an RIL spokesperson said the company was studying it.

RNRL sources said, ?The MoU is between the promoters of RIL and the petroleum ministry is not party to the same. The ministry has no locus to challenge any party of the MoU, which merely records the terms of corporate restructuring of RIL. It cannot and does not deal with or interfere with the rights of government.?

RIL also filed an application for the government to be impleaded as a second respondent. RIL contended this was necessary as the Centre?s stand was important and the decision of the apex court should be binding on all parties, including the government.