RIL offers to withdraw directors’ affidavits in gas dispute

Reliance Industries Ltd on Friday offered to withdraw affidavits filed by seven of its directors, claiming they were unaware of the contents of the memorandum of understanding signed between members of the Ambani family in 2005 for supply of gas from the Krishna-Godavari basin, on condition that Reliance Natural Resources Ltd agreed to withdraw an assertion in its affidavit that the RIL board had seen and approved the MoU.

''Please ignore the affidavits (of seven independent RIL directors), if he is willing to withdraw the paragraph from the SLP (special leave petition) of RNRL,'' said RIL counsel Harish Salve to a bench comprising Chief Justice K G Balakrishnan and justices B Sudershan Reddy and P Sathasivam.

Both the affidavits filed by the RIL directors and the assertion in RNRL's affidavit were not presented before the Bombay high court. Consequently Ram Jethmalani, the lawyer for RNRL, had on Thursday wanted to cross-examine the RIL directors. (See: Kokilaben can't be arbitrator, reiterates RIL)

Salve on Friday said he would withdraw the affidavits if RNRL dropped its assertion. It was not clear at the end of the day's proceedings if in fact the RIL directors would withdraw their affidavits.

Salve also sarcastically told the apex court that the post office fixed deposits scheme would have been a better option for RIL to invest its money rather than in the Krishna-Godavari block, if the company is forced to sell the gas to RNRL at $2.34 per unit.

He presented a chart to the court, outlining the estimated shares of the government and the contractor (RIL) on the basis of the approved development plan on K-G D6 block.