Reliance seeks to implead in suit by ex-Andhra CM’s widow

Reliance Industries Ltd (RIL) has approached the Andhra Pradesh High Court, seeking to implead itself in a public interest litigation filed by YS Vijaya, widow of former state chief minister YS Rajasekhara Reddy.

This comes at a time when the Central Bureau of Investigations (CBI) is set to ratchet up a probe into allegations that N Chandrababu Naidu had amassed wealth during his tenure as the chief minister of the state.

RIL has also asked the court to suspend an earlier order directing the CBI to conduct a preliminary enquiry into the allegations made by Vijaya.

Vijaya had earlier filed a 2,400-page public interest litigation (PIL) in the high court alleging Naidu had misused his powers between 1995 and 2004 and amassed wealth by helping industrial houses.

Among those named beneficiaries are RIL and pharma major Dr Reddy’s Laboratories.

The CBI earlier issued notices to Dr Reddy’s and the company has also sent its responses. Interestingly, both companies were not made respondents to the petition.

Responding to the petition, the high court had asked the CBI to conduct a preliminary enquiry into the allegations to assess if a case can be made out. The CBI was asked to submit its report in three months in a sealed cover.

Meanwhile, RIL, through its senior vice-president PBM Rao, has filed an implead petition in the high court asking the court to make it a party to the case and also suspend the operation of the earlier order asking the CBI to conduct a preliminary probe.

Vijaya, who is now an MLA in the AP assembly, had alleged that Naidu had deliberately allowed RIL to bid for the gas reserves in the Krishna Godavari basin though the state had an option of bidding for the reserves on the lines of attempts made by Gujarat.

After RIL bagged the fields, a quid pro quo arrangement was worked out through media baron Ramoji Rao, she alleged, charging that the Ambanis had invested in Ramoji Rao’s businesses through renowned investment banker Nimesh Kampani, promoter of JM Financial.    

Ramoji Rao is known to be close to Naidu.

“The Krishna-Godavari basin is home to one of the most lucrative gas deposits in the world, as was discovered in 2002, and estimated to be almost 40 times that of the Bombay High basin. While the basin is located in Andhra Pradesh, the (then) government under Naidu chose to turn an obliging blind eye to its rights to the discovery on its soil, while allowing Naidu’s close associate Ramoji Rao to be the vehicle of the quid pro quo,” Vijaya alleged.

Explaining the way the deal was allegedly worked out, she said, “In consideration for the favour done in allowing the state’s Krishna Godavari Basin claim to be brushed under the carpet, the Reliance group facilitated the payout of Ramoji Rao’s debts to his depositors. This was carried out through known associates and friends of Mukesh Ambani (chairman of RIL). Two of these known associates of Ambani and the Reliance Group are Nimesh Kampani and Vinay Chajlani.”

RIL refuted the allegations in its implead petition and said that the PIL was filed with oblique motives with a political vendetta. “The writ petition filed by the petitioner (Vijaya) is on the face of it malicious and filed with oblique motives. The writ petition is clearly filed out of political vendetta and was liable to be dismissed on this account itself,” the RIL petition said.

The industry major in its petition explained the way the KG basin reserves were allotted to it through a bidding process. “There were other bidders for this block in a global competitive tender and this respondent’s (RIL’s) bid with its partners Niko Ltd was the most competitive. On this block, the applicant (RIL) has spent approximately Rs 55,000 crore on exploration and development as per the production sharing contract (PSC) and the commercial production of natural gas has commenced. The production and sale of natural gas from this block is governed by the PSC and other policies,” it said.