Kejriwal orders FIR against Mukesh Ambani, Moily and Deora over gas prices
Kejriwal has reiterated what EAS Sarma, the former secretary to the GoI, has been saying over the years about Reliance Industries, its KG Basin operations, increase in gas prices and role played by the oil ministry

Arvind Kejriwal-led Delhi government on Tuesday ordered filing of criminal cases against petroleum & natural gas minister Veerappa Moily, former minister Murli Deora, Reliance Industries Ltd (RIL) chief Mukesh Ambani and others following complaints of irregularities in pricing of natural gas in KG basin. EAS Sarma, former secretary to the Government of India (GoI), has also been raising the irregularities in KG Basin and the increase in gas prices, since past several years.
Chief minister Kejriwal said anti-corruption branch (ACB) of the Delhi government has been asked to probe the matter based on a complaint filed by former Cabinet Secretary TSR Subrmanian, former Navy chief Admiral Tahiliani and eminent lawyer Kamini Jaiswal beside a former expenditure secretary.
"Today we have asked the ACB to probe the case. We are filing a criminal case against Murli Deora. First information reports (FIRs) are being filed against Moily, Mukesh Ambani, former DG of Hydrocarbons VK Sibal, Reliance Industries and others," he said addressing a press conference in the capital.
Without explaining whether Delhi Government has jurisdiction to probe the case, Kejriwal alleged that Reliance Industries was benefited as Oil Ministry decided to hike the natural gas price to $8 per million British thermal unit as against current $4.2 from 1st April.
However, the allegations made by Kejriwal are nothing new. Mr Sarma has been questioning the activities of RIL in the KG basin and increasing the gas prices since past several years, which according to him will have a long-term bearing on the public exchequer.
Last year in June, Mr Sarma, in a letter, had demanded independent investigation by a special investigation team or SIT in the whole gamut of showering one largesse after another on Reliance Industries. In a letter to prime minister Dr Manmohan Singh, he had said, "If the Central Bureau of Investigation (CBI) secures adequate autonomy, it could be entrusted with the task of investigating these improprieties. However, I do not feel quite hopeful of the government's intentions against the background of the statements being made by some of your esteemed colleagues. In that case, an investigation by a Special Investigation Team (SIT) should be instituted. I feel that the stakes involved in this matter are far too heavy to be taken lightly."  (Read more Set up SIT to investigate showering of one largesse after another on RIL, says Sarma 
In his salvo, Mr Sarma, cited a news report that says the petroleum minister is once again trying to bypass the mandatory provisions incorporated in the Production Sharing Contract (PSC) in the name of "national security" and extend additional concessions to RIL.
"This is unacceptable. It will amount to a gross impropriety. In fact, what the petroleum minister is now trying to do is to go against the letter and spirit of Comptroller and Auditor General's (CAG) report on PSCs and dole out yet another huge largesse to RIL. No wonder that those who had opposed such concessions in the past were forced to give up the ministerial portfolio of petroleum and natural gas," the former secretary said.
According to Mr Sarma, the Directorate General of Hydrocarbon (DGH) had recommended to the ministry that RIL should be directed to relinquish 86% of the KG-D6 block area as envisaged in the PSC, including that in which discoveries were announced belatedly.
"It is ironic that the ministry should choose to interpret the same PSC to hike up the gas price and quote "national security" and to deviate from the PSC, when it came to relinquishment of the franchised blocks as per the contract. It is nothing but a deliberate ploy to benefit RIL at the expense of the public," he said.
Earlier in November 2012, in a letter sent to prime minister Dr Manmohan Singh and petroleum minister Veerappa Moily, the former secretary had said, "The exploration and development effort put in by RIL in the KG Basin, the technology adopted, the resources discovered, the costs incurred, the claims made on pricing of gas and the costs to be reimbursed are all matters that impinge directly and indirectly on the public exchequer. All such matters should be subject to public scrutiny and RIL should be held accountable to the public". (Read more Why the petroleum ministry is reluctant for a CAG audit of RIL?  
On 7 May 2010, Mr Sarma in a letter to the Prime Minister had said, that in the wake of the recent court ruling, the Union government cannot abandon its own obligation to exercise due diligence and prudence in fixing the price of gas, determine the sectoral and regional allocations and take all such measures necessary to prevent the supplier from exercising monopolistic leverage to the detriment of public interest. (Read more Don't let private cos override public interest in KG Basin: EAS Sarma
He alleged that RIL did not produce adequate gas from eastern offshore KG basin block so as to put pressure on the Government to hike the price.
Reacting to Kejriwal's allegations, oil minister Moily, said: 'One should sympathise with his ignorance …he doesn't know how government runs."
While denying the allegations Moily said: "norms are followed...there is a system in fixing prices."
The Indian government has already approved a proposal to price domestic gas at an average of international gas hub prices and actual cost of importing gas in its liquid form into the country.
Kejriwal said hiking the price of natural gas will have a "cascading effect" on the economy as rates of transportation, power production, fertilisers and food items will go up significantly.
"I am writing to Prime Minister and the Oil Minister to keep the decision in abeyance pending the probe. I will also request PM to direct all ministries to cooperate with the probe," Kejriwal said.
He said the complaint alleged "collusion between some Union ministers and Reliance Industries Ltd" that purportedly resulted in the decision to double the gas price from 1st April.



sandip shetty

3 years ago

No one in India (politics) has the b*&^ls to bell the cat. Only AK and AAP has done it and still people criticizing him. We are a sorry nation of cynics. Anyway I am happy he has exposed this massive sham of the ruling class to benefit Reliance. Lets hope it brings the skeletons out and prices down.



3 years ago

Kejriwal's this step is a political gimmick before loksabha election

Vinay Joshi

3 years ago




Howsoever, Kejriwal govt. SOMEHOW wants exit from governance. SADLY, neither Cong; nor BJP is allowing them to exist & state as 'MARTYR'!?? AAP has come to the conclusion, as 'CONFUSED GOVT', better exit with which EVER manner!

More Kejriwal talks, more he gets exposed, his theatrics of no use to find escape route.

THIS IS THE END of his strategic aspects.


Tata Motors Q3 net profit surges 195% on strong performance by JLR

During the December quarter, Tata Motors net profit grew to Rs4,805 crore, contributed by 61% growth in Jaguar Land  Rover volumes

Tata Motors Ltd, India’s largest vehicle manufacturer reported a 195% jump in its third quarter net profit, mainly on robust volumes in its Jaguar Land Rover division. The company’s domestic sales for passenger and commercial vehicles, however, remained subdued.

For the quarter to end-December, the Tata group company said, its consolidated net profit grew 195% to Rs4,805 crore from Rs1,628 crore while, its total consolidated revenues, including sales, grew 39%to Rs63,877 crore from Rs46,090 crore, a year ago period.

During the quarter, Tata Motor’s total revenues from JLR division grew 61% toRs53,892.50 crore, thus accounting for 85% share in its total revenues. However except JLR, Tata Motors and its other brands’ total revenues fell 21% to Rs9764.92 crore from Rs12,345.19 crore a year ago period.

“Jaguar wholesale and retail volumes for the quarter ended 31December, 2013 grew 22.7% to 116,357 units and Land Rover grew 26.5% to 112,172 units as compared to year ago. Growth in volumes is driven by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE, alongside higher volumes of the newer XF and XJ derivatives,” Tata Motors said in regulatory filing.


Tata Motors closed Monday marginally down at Rs364 on the BSE, while the 30-share Sensex ended the day flat at 20,334.

For more stock results, check out this page


NCDRC asks Reliance General Insurance, Alankit Health Care to pay Rs3.5 lakh mediclaim

While asking the insurer and its agency to pay Rs3.5 lakh mediclaim, the apex consumer forum directed Federal Mogul Goetze, the employer, to pay Rs30,000 compensation and keep renewing the complainant’s policy till he needs it

The National Consumer Disputes Redressal Commission (NCDRC) ordered Reliance General Insurance Co Ltd (RGI) and Alankit Health Care Ltd to jointly pay Rs3.5 lakh to Bangalore-based GR Yoganarsimha, for denying his mediclaim.


In the judgement given on 15th January, the apex consumer forum also ordered Federal Mogul Goetze, former employee of Yoganarsimha, Rs20,000 for mental agony and Rs10,000 towards cost.


Yoganarsimha, who worked as a deputy general manager with Federal Mogul Goetze, continue to avail the company’s Group Health Insurance by paying premium even after his retirement in 2003. The insurance was released by Reliance General Insurance and Alankit Health Care was the authority to settle medical claim. Both RGI and Alankit settled all medical claims of Yoganarsimha till November 2009 on regular basis.


However, they refused to settle claims for medical bills of Rs43,402 and Rs1.72 lakh towards dialysis and Rs2.5 lakh towards renal transplantation raised by Manipal Hospital in 2010. 


Following this refusal, Yoganarsimha filed a complaint with the district forum in 2011. Partially allowing the compliant, the district forum directed both RGI and Alankit to pay Rs43,402 with an interest of 12%. “the insurance, as applicable to the Complainant, is Rs12.5 lakh relating to major ailments, for the period from 29 June 2009 to 30 June .2010. It is held that Rs43,402 is not proper. The Opposite Parties 1 and 2 are directed to pay Rs43,402 to the Complainant with interest at 12% p.a. from 9 January 2010, until actual payment. The Complainant shall be entitled to make fresh claim and request to renew the insurance policy, as discussed above,” it said in an order.


As per the directions from the district forum, Yoganarsimha submitted a claim along with a demand draft (DD) of Rs14,000 to Federal Mogul Goetze and asked the company to forward it to RGI and Alankit. However, it was returned unopened. Yoganarsimha, then took a fresh DD of Rs14,000 and handed over to the company. Federal Mogul Goetze sent the DD to Yoganarsimha stating that he should make his own arrangements for insurance coverage.


While Federal Mogul Goetze renewed policies of other retired employees, it refused to do same for Yoganarsimha, who contended that it is hostile discrimination.


In pursuance of the order of District Forum, Yoganarsimha made efforts to claim the remaining amount, however, all three, RGI, Alankit and Federal Mogul Goetze did not settle the claim. Yoganarsimha then filed another complaint (No. 1157/2011) before the District Forum with the prayer for renewal of insurance policy from 1 July 2010 to 30 June 2011 and pay claims towards the renal transplant (Rs2.5 lakh) and towards dialysis (Rs1.72 lakh), with compensation of Rs50,000 for deficiency and mental agony.


However, the District Forum dismissed the complaint. Even the State Commission dismissed Yoganarsimha’s first appeal, by making an observation as, “the remedy sought by the complainant/appellant is in the form of declaratory to renew the policy and make payments cannot attract the provisions of the C.P. Act.”


During the hearing before the NCDRC, both RGI and Alankit remained absent. The apex forum observed that Federal Mogul was trying to wriggle out from the litigation and shell out its burden on RGI and Alankit. It contended that it is not the insurance company, but both RGI and Alankit are the ones who have stopped the renewal.


Federal Mogul contended that, Yoganarsimha neither paid any service charges to the company, nor has the company collected any money from him for sending the amount to RGI and Alankit. “Earlier, the company was doing service as a postman freely, but now do not want to extend that service. Hence, Yoganarsimha is not a consumer of the company and there is no deficiency from it. If there is any discrimination, then the remedy of Yoganarsimha is elsewhere, to get renewed the policy in question,” Federal Mogul claimed.


However, the NCDRC said that it was not impressed by this argument of counsel for Federal Mogul. “The letters written by the Yoganarsimha clearly establish that in accordance with the order of District Forum, dated 8.3.2011, he made several possible efforts for his claim and the renewal of policy. But, Federal Mogul did not heed to the same, and tried to escape from his responsibility towards the retired employee. It was a Group Insurance Scheme and after retirement, since 2003, Federal Mogul used to receive premium from Yoganarsimha and the policy was renewed from time to time. Federal Mogul forwarded the premium for renewal of other employees; except Yoganarsimha, after 2010. In our view, this is a deficiency in service and it is absolutely discrimination and intentional act of Federal Mogul,” the apex forum said.


Yoganarsimha wrote a letter to the Federal Mogul on 21 July 2010 for “Continuation of MIHS for year 2010-2011” and the reply received by Federal Mogul stated its goodwill gesture and the coverage up to Rs3.5 lakh. The relevant text reproduced as follows:


 “Notwithstanding the above, we write to inform you that, the MIHS scheme is extended to retired employees as good will gesture and the Company does not take any liability whatsoever on account of it.  The company is only facilitating these categories of eligible employees to take their policy from Insurance Company.  We do not have any objection to facilitate you to continue your Mediclaim policy as good will gesture on payment basis, provides you withdraw the case against the Company.  The renewal will be for only, the sum assured for the Mediclaim policy, applicable to your category.  You cannot contend that the coverage for major diseases should be Rs12.5 lakh etc. The present coverage for major diseases is only Rs3.5 lakh.  If the same is acceptable, you may send your request for coverage with the Demand Draft for the premium amount.


It is also made clear that, you are free to take Mediclaim policy of your choice from any insurance company and there is no compulsion of any kind from us.”


The NCDRC said, in this identical matter, it also relied upon the decision of the Supreme Court in the Civil Appeal No 2296/2000, Biman Krishna Bose Vs. United India Assurance Co. Ltd and Ors. (2001)6 SSC 477 in which the Court directed the respondent company for renewal of appellant’s mediclaim policy for the expired period, and pay the premium; the respondent company would renew the said mediclaim policy forthwith.


While partially allowing the petition, the apex forum directed RGI and Alankit to settle Yoganarsimha’s claim of Rs3.5 lakh and Federal Mogul to renew his policy after taking Rs14,000 for the expired period and renew further from time to time till he needs it. NCDRC also asked Federal Mogul to pay Rs20,000 for mental agony and Rs10,000 towards cost to Yoganarsimha.




3 years ago

Good article, Extensive research input.

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