Indian court makes Reliance gas feud ruling

Indian court makes Reliance gas feud ruling
breaking news

India's Supreme Court has ruled in favour of billionaire Mukesh Ambani's Reliance Industries in a dispute with his brother over natural gas prices.

The court said that a family pact which set a price for natural gas to be sold from Reliance Industries to Anil Ambani's company was not binding.

It rules the higher price fixed by the government must prevail. Analysts say Reliance Industries stands to benefit.The ruling gives the brothers six weeks to re-negotiate the contract.

According to a family pact Mukesh Ambani's company was to supply gas at $2.34 per million units to Anil Ambani's Reliance Natural Resources Limited (RNRL) for 17 years.

This price was lower than $4.20 per million units set by the government in 2006 for all buyers of gas.

But Anil Ambani, who owns Reliance Natural Resources, did not accept the higher selling price set by the government, citing the agreement with his elder brother.