Mumbai: Anil Ambani-led Reliance Natural Resources Ltd (RNRL) has demanded that Mukesh Ambani's Reliance Industries (RIL) pay up Rs50,000 crore damages to scrap the so-called gas sale master agreement (GSMA) signed between the two companies, or alternatively to appoint an expert to renegotiate the gas supply agreement.

RNRL rejected the gas supply agreement, signed between the two in 2005, saying it wants a contract for 17 years and the present contract does not assure certainty of supplies.

RIL, on the other hand, said it does not have enough confirmed gas reserves in Krishna-Godavari basin to accept this demand.

RIL also said it cannot supply gas at $2.34 per million British thermal units (mBTUs) as RNRL insists.

''The court should either appoint an expert (to renegotiate the controversial GSMA) or order RIL to pay us damages,'' RNRL counsel Mukul Rohatgi said during arguments.

RNRL has blamed RIL for delaying its power project in Dadri because the Mukesh Ambani-controlled company hasn't assured it of regular gas supply from the Krishna-Godavari Basin for 17 years.

The GSMA should entitle RNRL to 28 million cubic metres of per day of gas supplies from KG basin at a price of $2.34 per mmbtu for 17 years, he said.

''RIL is frustrating our scheme in putting up our power plant by claiming that it will not be able to supply 28 mscmd gas to us for 17 years,'' Rohatgi argued.

He also refuted RIL's claim that they cannot guarantee supplies for 17 years as they are not sure of the gas reserves. RIL's exploration partner Niko has said the reserves are five times more than what they have quoted in the court, he pointed out.

Senior counsel Ram Jethmalani, also arguing for RNRL, alleged that RIL in fact has enough reserves to meet this demand. ''We can prove this," he told the court. He also rejected RIL's contention that the price at which it will be supplying gas will be subject to government's approval.

The gas supply pact of 12 January 2006, was not a negotiated contract as it was between Mukesh Ambani and Mukesh Ambani who controlled both RIL and RNRL at that time, Jethmalani said, adding, that it also went against the initially agreed terms.

Sandeep Tandon, who chaired the meeting when RNRL was still a subsidiary of RIL, signed the contract on behalf of the entity that eventually went to Anil Ambani, he pointed out.

Jethmalani cited a reply in Parliament to show that the government has set no pricing policy for private gas sales.

The government, however, has intervened in the present case, but its lawyer is yet to make submissions.

RIL chairman Mukesh Ambani, Jethmalani said, has violated the terms of the memorandum of understanding under which the Dhirubhai Ambani's empire was divided between the two brothers in 2006.

''The core issue is that the transactions of 12 January were a wanton, gross, criminal breach of trust,'' Jethmalani said, adding, that he should therefore be prosecuted for criminal breach of trust, abatement of forgery and perjury.