Thursday, November 26, 2009

Brother Vs Brother - Charade continues

As the case between the Ambani brothers reaches the concluding arguments, as a common man who will be impacted to the extent this will affect my power costs, one has been following this charade.

It bemuses me that a lot of facts have been allowed to be agitated by the Supreme court which as far as I am aware a body which only allows appeals on points/ interpretation of law or on the understanding of the constitution. The only new issue being debated is whether a NELP guideline or a direction of a ministry of the Government supercedes an agreement between private parties. On the background of the Indian constitution this is a no brainer - obviously the government dikat runs over any private agreement. DUH!

At the same time the supreme court cannot ignore the rights of an individual and in this case millions of shareholders as well. The best solution is (again based on existing law)
1. The government rate is to be applied only for computation of taxes due to the government - hence government interest is protected in full.
2. the rate to be paid by RNRL to RIL should be what was agreed in the family agreement - no more no less.
3. Based on 2 above NTPC also pays the enhanced tax but buys gas at lower rate.

CASE CLOSE!!

Of course the issue of who will pay the enhanced tax due to the government remains? As RNRL is the person to pay the tax as the end user it stands to reason that they would bear this.

So why are M/s Jethmalani, Salve and Parasar making such elaborate arguments when as people who have taken an oath as officers of the court to help the judge arrive at the truth they should have closed this on day one. Maybe the incentive of money is really strong to keep the argument alive!

No comments:

Post a Comment