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SC admits SL petition against transfer of Mukta-Panna oilfields to consortium

The Supreme Court today admitted a special leave petition challenging the controversial transfer of the Mukta-Panna oilfields in the Bombay High from the Oil and Natural Gas Corporation to a joint consortium of Reliance Industries Limited, Enron Oil and Gas Authority of India Limited and ONGC at an allegedly huge loss to the public exchequer.

A division bench of the court comprising Justice S P Bharucha and Justice R C Lahoti admitted the petition in spite of an objection by senior counsel Harish Salve appearing for the consortium that he be allowed to place his views. The bench said it was admitting the petition in order to have a closer look at the contract.

Earlier senior counsel Shanti Bhushan, appearing for the petitioner, urged the court that in the public interest the court must have a close look at the deal for the transfer.

The Central government transferred the fully developed oilfields in December 1994 to the joint consortium for a total payment, called signature bonus, of nearly $ 3.6 million dollars (Rs 120 million), according to the petition.

The petition said that ONGC had spent over Rs 5 billion on the development of these oilfields and was selling oil to the government of India at an administered price of Rs 147 per tonne or $ 8 a barrel.

The petition apprehended that the government might have to buy oil from the consortium at a much higher price.

The petitioner had sought before the high court a thorough investigation into the deal by an appropriate agency under the supervision of a senior and independent person such as a retired judge of a high court or the Supreme Court.

It had also sought the initiation of criminal and departmental proceedings against the officers found guilty after the investigation and cancellation of the contract awarded to the consortium.

UNI

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