The Narendra Modi-led Government and Reliance Industries Limited (RIL) head Mukesh Ambani tussle is going in a way that may hamper the tycoon’s plan to clinch the 15-billion-dollar deal with Saudi Arabia’s oil giant Aramco. The latest in the Govt Vs Mukesh saga is the Reliance approaching Delhi High Court to recall its order asking RIL to disclose its assets. On Friday, the Court issued notice to Centre to seek its response on Reliance’s re-call order petition. Here the billion-dollar-question is why Mukesh Ambani’s Reliance is afraid to declare its assets?
The tussle came out in the open when the Centre approached Delhi High Court in November 2019 to restrain Reliance from the 15 billion dollar deal with Saudi Aramco, citing the dues to Government of around $3.85 billion in the Panna – Mukta/ Tapti oil fields. PGurus has reported this matter in great detail.
The Centre’s affidavit is an all-out attack on Mukesh Ambani-led Reliance. The Centre in its application has alleged that RIL is under a huge group debt and it was in the process of selling or transferring or alienating its assets and creating third-party interest in the movable and immovable properties to cover its liabilities. The Govt. has said in the application that if RIL liquidates its assets and properties, there would be nothing left for the government to execute the arbitral award.
The Delhi High Court on Friday (January 10, 2020) sought the Centre’s reply on a plea by Reliance Industries Ltd seeking recall of orders asking it to file an affidavit on its assets. Justice J R Midha issued notice to the central government on RIL’s application and listed the matter for hearing on February 6. The application was filed in a pending petition of the Government for the execution of an arbitral award in its favour. RIL has sought recall of two previous orders of November 22 and December 20, 2019.
Earlier, the court had passed the two orders on an application by Government in which it had sought directions to RIL and British Gas (BG) not to dispose of their assets. In the application, the Government has sought to restrain the two companies from disposing of their assets as they have allegedly failed
to pay it over USD 3.85 billion as per an arbitral award in favour of the Centre in relation to the Panna-Mukta and Tapti (PMT) production-sharing contracts.
The high court on December 20, 2019, had directed the two companies to file an affidavit of their assets in accordance with the new format of form 16A under the Civil Procedure Code (CPC) that the High Court has drafted in a recent judgment.
Here the questions raised are:
- Why is Mukesh Ambani afraid to disclose the assets and asking Court to recall its Order to declare assets?
- In the political and business circles many wonder why Narendra Modi-led Government and Mukesh Ambani-led Reliance are arm wrestling? What could be the reason behind this?
 Mukesh Ambani’s 15-billion-dollar deal with Aramco faces objections from the Govt of India – Jan 2, 2020, PGurus.com
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