PILs against Mukesh Ambani, Anil Ambani & Ratan Tata kept Delhi HC engaged in 2011
RIL inflated capital expenditure from $2.4 billion to $8.4 billion, causing unquantifiable losses of thousands crores of rupees to the state.
A plethora of PILs and lawsuits seeking action against the who's who of corporate India kept the Delhi High Court busy in 2011 as it dealt with cases like RIL's KG D-6 basin row, Air India's aircraft purchase deal, 3G inter-circle roaming and excess 2G spectrum allotment.
Some petitions were entertained and few others trashed by the high court including pleas to prosecute Anil Ambani and Ratan Tata in 2G case. However, public spirited litigants kept alleging that corporate bigwigs resorted to unfair means by flouting the law of the land to secure advantage.
The court also rejected the plea seeking cancellation of the license granted to Mukesh Ambani-led firm for exploration of gas in the Krishna-Godavari (KG D-6) Basin on the ground that the JV between RIL and Canada-based NIKO allegedly cheated the exchequer by inflating expenditure in connivance with a top official.
It asked petitioner Furquan to approach the Parliamentary Accounts Committee (PAC) which is seized with the issue. The bench, however, made it clear that if the petitioner is not satisfied with PAC's findings then he may approach it again.
It was alleged the JV cheated the state by inflating expenditures as there was a provision in the revenue-sharing agreement that RIL was entitled to recover all expenses before sharing it with the government.
Taking advantage of the revenue-sharing agreement, RIL inflated capital expenditure from $2.4 billion to $8.4 billion, causing unquantifiable losses of thousands crores of rupees to the state, the PIL alleged.