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| Court rules in Reliance gas feud | Court rules in Reliance gas feud |
| (about 2 hours later) | |
| India's Supreme Court has ruled in favour of billionaire Mukesh Ambani's Reliance Industries in a dispute with his brother over natural gas prices. | India's Supreme Court has ruled in favour of billionaire Mukesh Ambani's Reliance Industries in a dispute with his brother over natural gas prices. |
| The court said that a family pact which set a price for natural gas to be sold from Reliance Industries to Anil Ambani's company was not binding. | The court said that a family pact which set a price for natural gas to be sold from Reliance Industries to Anil Ambani's company was not binding. |
| It rules the higher price fixed by the government must prevail. Analysts say Reliance Industries stands to benefit. | It rules the higher price fixed by the government must prevail. Analysts say Reliance Industries stands to benefit. |
| The ruling gives the brothers six weeks to re-negotiate the contract. | The ruling gives the brothers six weeks to re-negotiate the contract. |
| According to a family pact Mukesh Ambani's company was to supply gas at $2.34 (£1.59) per million units to Anil Ambani's Reliance Natural Resources Limited (RNRL) for 17 years. | |
| This price was lower than $4.20 (£2.85 )per million units set by the government in 2006 for all buyers of gas. | |
| But Anil Ambani, who owns Reliance Natural Resources, did not accept the higher selling price set by the government, citing the agreement with his elder brother. | But Anil Ambani, who owns Reliance Natural Resources, did not accept the higher selling price set by the government, citing the agreement with his elder brother. |
| 'National asset' | |
| Last year his company won a case in the high court in Mumbai, which was aimed at compelling his elder brother's company to honour the family agreement. | |
| Mukesh Ambani has appealed against the judgement in the Supreme Court. | |
| While delivering the judgement, the Supreme Court said that natural gas is a "national asset" and that companies involved in marketing it have to abide by the price set by the government. | |
| Shares of Reliance Industries rose 3.6%, while shares in Anil Ambani's Reliance Natural Resources plunged 16.8% after the judgement, reports say. | |
| The gas was discovered by Reliance Industries in the Krishna Godavari basin off India's eastern coast in 2002, three years before the brothers parted ways. | |
| The Reliance empire was divided between the two brothers in 2005 after a bitter seven-month feud. | |
| India's oil ministry has also become embroiled in the controversy. Minister Murli Deora has been criticised by Anil Ambani for allegedly siding with his elder brother. | |
| But Mr Deora has said gas is a national property and belongs to the people of India. | |
| The dispute is impeding efforts by the government to harness India's natural gas reserves to help tide over its energy crunch. | |
| Three companies - RIL, the state-owned Oil and Natural Gas Corporation (ONGC) and Gujarat State Petroleum Corporation (GSPC) - are investing $30bn to produce gas from the Krishna Godavari basin. | |
| All the three companies have discovered gas - and some oil - in three different blocks. |