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
BUT THE QUESTION IS WHO WILL FILE THE FIR? HIMSELF AS CM? THE GROUND & STATEMENT OF FACTS?! DOES HE KNOW THE MEANING OF FILING FIR? Even if so...
NOTHING WILL COME OUT FROM THIS!? A gimmick!
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.
Regards,