RIL RNRL Verdict Passed

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MUMBAI (GaeaTimes.com)- The verdict on the RIL RNRL case that has been running on for four years now is finally out, with the Supreme Court judge ruling that the Government would be the one to have complete authority over the pricing of the natural gas, thus overruling the suggestion of the Anil Ambani led RNRL that the government was being partial to the RIL, led by Mukesh Ambani. The judge ruled that the government has the ultimate power over the natural gas resources, and that none of the companies could decide the pricing of the same, the authority of which lies with the government.

Right after the judgment was passed, Anil Ambani left the courtroom without waiting to answer the questions posed by the reporters outside. The decision, however, was welcomed by the government, as the RIL RNRL verdict was in accordance to the Production Sharing Contract, which deems that the government has the ultimate authority to determine the price and utilization of fuel. The judge ruled that the companies could not have absolute right over the natural resources as the MoU of the Ambani family has not been made public, therefore, the authority dopes not lie with the family.

The RIL RNRL verdict has also been taken favorably by the stock market. Right after the verdict was passed, the shares of the RIL shot up by almost 5%, with the shares of RNRL tanking close to almost 20%, and falling to Rs 55. As was expected, the judgment of Supreme Court managed to make a huge impact on the share market.