NEW DELHI : Delhi Chief Minister Arvind Kejriwal has said  legal cases will be filed against billionaire Mukesh Ambani, Union Oil Minister Veerappa Moily and other policy-makers for colluding to inflate the prices of gas produced from the D6 block off the eastern coast. Reliance sells gas to the state-owned National Thermal Power Corporation (NTPC).
“Today we have instructed the anti-corruption branch to file a criminal case against Murli Deora, FIRs against Veerappa Moily, VK Sibal, the (then) director general of hydrocarbons, Reliance Industries Ltd Chairman Mukesh Ambani and others,” Mr Kejriwal said, declaring that Reliance was being allowed windfall and illegitimate gains.
In December, the Centre said that starting April, Reliance Industries can charge higher prices for gas  after the company offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output.
Mr Kejriwal said he will ask the central government to suspend the latest order on gas pricing pending an inquiry.
Reliance, which operates the D6 block off  the eastern coast, has reported a sharp decline in gas output since 2010. Reliance and partner BP have blamed geological complexities for the fall in output, but the oil regulator believes they failed to drill enough wells.
In June last year, the Centre approved a move to higher, market-related rates for locally-produced gas from April 2014, but the finance ministry later said that prices for Reliance should be capped because the company’s gas production from the offshore D6 block is far below its supply commitment.
Gas from D6 was earmarked for strategic domestic industries including fertiliser production, cooking gas and power, but has fallen so much that only some fertiliser plants now get supplies from the offshore block.

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