The conversation makes it clear that Ambani had powerful influence over the Congress and the BJP, he claimed.
"In the Nira Radia tapes, Ranjan Bhattacharya (former prime minister A
B Vajpayee's son-in-law) is heard telling Niira that Mukesh Ambani told
him 'Congress to ab apni dukaan hai."
"BJP signed a sweet deal with RIL in 2000. Congress faithfully implemented it."
A press release from IAC alleged Prime Minister Manmohan Singh had succumbed before corporate interests.
"The PM was very sympathetic to RIL. PM requested Ministry of
Petroleum to seek AG's opinion on whether gas prices could be increased
midway as demanded by Reliance. It is strange why did the PM not show
similar concern when NTPC was forced to accept higher gas price from
RIL? Why is the PM not pulling up Reliance for not producing 80 mmscmd
gas as per their commitment? Why did the PM not seek legal opinion when
country¡¦s interests were at stake? Why is PM showing so much interest
when RIL interests are at stake?"
It also says: "This episode explains the real reasons for price rise
in the country. The government seems to be succumbing to illegitimate
demands of some powerful corporates in the country (like RIL in this
case). Benefits provided to RIL in this case contributed to price rise
in power and fertilizer sectors. Similarly, on one hand, government says
that they do not have Rs. 35,000 crores
to provide LPG subsidy to the people, on the other hand, the government
bends backwards to provide benefits to these corporate."
The press conference also witnessed some drama when three youths
shouted slogans against Kejriwal and tried to throw a shoe at him. The
youths were overpowered by IAC supporters and handed over to police.
Just before this, another man raised questions about his wife, an IRS
Officer, not getting a transfer out of Delhi for the past 20 years.
As there was commotion, Kejriwal asked his supporters to allow him to
raise the question but media persons surrounded him, saying
non-journalists were not allowed to raise questions.
India Against Corruption's main allegations:
2006, Mani Shankar Iyer was removed and Murli Deora brought in to
increase RIL capex from $ 2.39 billion to $ 8.8 billion and to increase
gas price from $2.34 per mmBTU to $ 4.2 per mmBTU
* In 2012, Jaipal Reddy has been removed and Moily brought in to
increase gas prices from $ 4.2 per mmBTU to $ 14.2 mmBTU and to condone
RIL’s blackmailing of reducing gas production
* Both BJP and Congress involved. BJP signed a sweet deal with RIL in 2000. Congress faithfully implemented it
* If RIL demand of increasing the gas price to $ 14.2 is accepted, it
would lead to shut down of several gas based power plants and increase
in power and fertilizer prices
* By this deal, RIL would benefit by an additional Rs. 43,000 crore
* In Nira Radiia tapes, Ranjan Bhattacharya (Vajpayee’s son in law)
is heard telling Nira that Mukesh Ambani told him –“Congress to ab apni
* Huge benefits given to RIL in last one decade despite flagrant
violations of various agreements by RIL. Benefits to RIL causing serious
price rise in the country.
* "In order to pressurize the government, RIL substantially reduced
its production of natural gas. Total consumption of natural gas in the
country is 156 mmscmd. According to agreement, RIL was supposed to
produce 80mmscmd (more than 50% of the total demand) from 2009."
* "RIL got this contract during NDA regime in the year 2000. The
contract was meant to favor RIL right from the beginning. In any
business, increase in costs means decrease in profits."
The IAC press release alleged that performance of RIL so far has been
much worse than perhaps the worst performing government department.
1. 4 times cost escalation within 2 years from $ 2.39 billion in 2004 to $ 8.8 billion in 2006.
2. Increase in gas price from $ 2.34 per mmBTU in 2004 to $ 4.2 per mmBTU in 2007 to the present demand of $ 14.2 per mmBTU.
3. Capacity created for producing 80 mmscmd after incurring such a huge cost ends up producing just 27 mmscmd after 12 years.
4. 31 oil wells should have been in production till now. Out of them, just 13 are functional.
Kejriwal and lawyer Prashant Bhushan, a leading member of IAC,
alleged the allocation of KG Basin to Reliance is on similar lines as
coal block allocation scam. They alleged both Congress and BJP were in
(IAC allegations mentioned in the story taken from website www.indiaagainstcorruption.org)