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Rediff.com  » Business » Delhi govt action shocking, says Reliance Industries

Delhi govt action shocking, says Reliance Industries

February 11, 2014 21:45 IST

Terming Delhi Chief Minister Arvind Kejriwal ordering FIR against it as shocking, Reliance Industries said the complaints that were used to base the action are baseless and devoid of merit or substance.

"The direction of the Delhi Government to order the registration of an FIR in relation to the decision of Union Cabinet to revise the price of gas is indeed shocking," the company said in a statement.

Kejriwal earlier in the day said police complaints will be field against RIL, its Chairman Mukesh Ambani and Oil Minister Veerappa Moily for creating an artificial shortage of gas in the country and raising prices.

This, he said, was being done because he had received complaints that RIL, Ambani and some ministers have manipulated gas prices.

"The complaint and each of the allegations on the basis of which the Delhi Government has taken such action are completely baseless and devoid of any merit or substance whatsoever," RIL said in the statement.

"The allegations appear to have been made by persons who are also petitioners in the Supreme Court of India in a petition in which similar allegations have been made," it said.

In a bid to boost domestic output and renew almost stagnant oil and gas hunt, the government had in June last year decided to price all domestically produced natural gas at an average of international hub prices and cost of imported liquefied natural gas (LNG).

Price according to this formula will rise to $8-8.4 per million Britsh thermal unit in April from $4.2 currently.

"We deny these irresponsible allegations and propose to resort to the available legal remedies to protect our reputation and preserve the pioneering efforts and investment made by Reliance so far," the statement said.

RIL, it said, remains fully committed to the development of oil and gas sector in India within the parameters of law.

"The issue of gas pricing is also a contentious issue between the contracting parties being the Government of India and the Contractors," it added.

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