FIR Filed by ACB Delhi For Gas Pricing Wednesday Feb 12,2014

The Anti Corruption Bureau (ACB) on Wednesday Feb 12,2014 filed an FIR over alleged collusion for hiking prices of natural gas from KG basin on the orders of Delhi chief minister Arvind Kejriwal, TV channels reported.

However, petroleum minister M Veerappa Moily, former minister Murli Deora and Reliance Industries Ltd chief Mukesh Ambani, who were on Tuesday attacked by Kejriwal for their alleged involvement, were not named in the complaint, according to the reports.

Delhi Chief Minister Arvind Kejriwal had directed the ACB to register an FIR against Reliance Industries Ltd (RIL) chairman Ambani, Moily, Deora and former director general of hydrocarbons VK Sibal for increasing the price of natural gas produced in India. The increase will cost the country Rs. 54,000 crore per year.

Kejriwal’s move followed a complaint by former cabinet secretary TSR Subramaniam, former navy chief Admiral RH Tahiliani, former revenue secretary EAS Sarma and Supreme Court lawyer Kamini Jaiswal, which alleged that ministers and bureaucrats, in collusion with RIL, increased gas prices to give the company undue benefits of Rs. 1.2 lakh crore.

Note
The Cabinet Committee on Economic Affairs had, in June 2013 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 1,2014

PSUs like ONGC and OIL produce 70% of India’s gas and so, will 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.