FRI against hike in gas prices politically motivated

Dr Satish Misra. Dated: 2/14/2014 11:30:26 PM

On Wednesday, the anti-corruption branch (ACB) of Delhi government on the orders of Chief Minister Arvind Kejriwal filed a FIR on K G Basin gas pricing issue in which Reliance Industries Limited (RIL) chairman Mukesh Ambani, Petroleum Minister Veerppa Moily, former Petroleum Minister Murli Deora and former Director General of Hydrocarbons V K Sibal under the Prevention of Corruption Act have been named for hatching a "conspiracy" to double gas prices in order to benefit primarily the RIL.
Kejriwal, while announcing the probe, said that the details received by the Delhi government in complaints filed by former Cabinet Secretary T SR Subramaniam, former Navy Chief R H Tahiliani, former Expenditure Secretary E A S Sarma and Supreme Court lawyer Kamini Jaiswal were "shocking" and an "assault on India's economic sovereignty which amounted to anti-national activity".
Complaints alleged that gas prices would double from April 1 this year due to alleged "active collusion" between RIL and some central ministers. In case hike is allowed, it would have a cascading effect on transport, domestic gas and electricity prices. It has also been alleged that increased gas prices would give RIL and other companies' benefits of Rs 1.2 lakh crore.
The complaints also alleged that there was malafide intent on the Congress led UPA government's part as it was implementing the decision at the fag end of its term and should have left the matter to the new government. At the same time, the Delhi Chief Minister also demanded that the central government should put price hike of gas in abeyance till the time the probe into the matter is completed. "We have always said price rise is linked to corruption and this is an example. In case this price is allowed to take place, it will make the life of common man miserable", the Chief Minister said.
The Cabinet Committee on Economic Affairs had, in June last year, approved a gas pricing formula fixed by a committee headed by former RBI Governor C Rangarajan. According to this formula, gas prices in India will rise from $ 4.2 per unit to $ 8.4 per unit from April this year.
Public Sector Units like ONGC and OIL, which produce close to 70% of country's gas, would get the lion's share of the benefits accruing from the higher gas prices. RIL's KG-D6 block accounts for 15% of India's gas production. While the Petroleum Minister said the decision to raise prices was taken on the recommendations of the expert committee, the RIL called the decision to file an FIR "shocking".
"The complaint and each of the allegations on the basis of which the Delhi government has taken such action are completely baseless and devoid of any merit or substance whatsoever. The allegations appear to have been made by persons who are also petitioners in the Supreme Court of India in a petition in which similar allegations have been made", the RIL said in a statement.
Moily further defended the price rise saying that higher price was necessary to attract more domestic and foreign investments in country's oil and gas sector. "If we can import gas at $ 12-16 per unit, what is wrong with paying half that price to domestic producers", the Petroleum Minister said.
Moily took a dig at Kejriwal saying that "I should sympathise with his ignorance. He should know how government functions". Kejriwal's announcement on Tuesday created quite a media flutter and raised questions about the timing of the move. Was it aimed at arresting the credibility and popularity of the Aam Admi Party (AAP) across the country close to the general elections? Or it was targeted at the Congress to force it withdraw its support to his government in Delhi so that he could free himself from the burden of governance and campaign for the AAP in the Lok Sabha elections?
Timing of the move is particularly significant if seen in the background of the two public interest litigations (PILs) filed in the Supreme Court. PILs by CPI MP Gurudas Dasgupta and NGO Common cause, respectively, have challenged the higher gas price and have sought cancellation of RIL's contract to produce gas in the KG-D6 basin, off the Andhra Pradesh coast.
Politics of the action apart, the Delhi government's order raises serious questions on the validity and constitutionality of the move. Whether the issue comes under the jurisdiction of the Delhi government is a question that experts are asking. Experts like Leader of the Opposition in the Rajya Sabha have called Kejriwal's action a "constitutional monstrosity" as the Delhi government's order violates the country's Constitution. "The issue is "can the State government, through its Anti-Corruption Branch, investigate a decision taken by the Central Government", Jaitley asked.
"This is illegal", declared the constitutional law advocate Rajeev Dhavan. The ACB "only has jurisdiction over Delhi government officials. If Kamini Jaiswal wants to file an FIR under the Prevention of Corruption Act, then the CBI or a police officer will investigate charges which will be adjudicated upon by a sessions judge. Where does the anti-corruption branch of the Delhi government comes in", Dhavan asked.
AAP leader Prashant Bhushan defended the action saying the Delhi government was well within its right to lodge FIRs. "Our party had to take this step as we had vowed to defend the national interest and we are taking cognisance of the complaint .... which strongly raises the issue of new gas price which will destabilise the economy", Bhushan said.
At a close look at the arguments of experts, it becomes more than evident that the AAP is desperately looking for issues to remain credible in popular perception to remain a strong political player in the coming Lok Sabha polls.
--[IFS]

 

Video

The Gaza Crisis and the Global Fallout... Read More
 

FACEBOOK

 

Daily horoscope

 

Weather