The Supreme Court on Monday asked the Centre and oil minister M Veerappa Moily to explain as to why Mukesh Ambani-led Reliance Industries should be allowed to make windfall gains by paying more to produce gas from the KG basin off the east coast.
The apex court issued the notices after a public interest litigation (PIL) sought a direction to the government to stay its decision to increase the price of natural gas from $4.2 to $8.4 mmbtu.
Besides disallowing cost recovery of $1 billion by RIL, CPI MP Gurudas Dasgupta and former power secretary EAS Sarma who filed the PIL also want a direction to the Centre to disallow cost recovery to the extent of $1.7 billion and $2.4 billion for 2012-13 and 2013-14, respectively, and deduct the same from RIL’s calculation of costs.
The next hearing is scheduled for September 6.