But Reliance Industries challenged the verdict in the Supreme Court, which heard the case July 20 and fixed Sep 1 as the next date of hearing. It also asked all parties to file their replies on the government position on the matter by then.

According to Anil Ambani, the resolution of the gas dispute was also important as it was holding up power projects of at least 12,000 MW at a time when the country was facing acute shortage of electricity.

His outburst Tuesday had created quite a stir in the corridors of power in the national capital where Petroleum Minister Murli Deora and Law Minister V. Moily held an hour-long meeting late evening with Finance Minister Pranab Mukherjee over the allegations.

Sources in the oil ministry said the government may now seek the Supreme Court's permission to modify its affidavit filed in the matter while also wanting to join the dispute as an intervener.

Wednesday also saw the Lok Sabha, the lower house of parliament, adjourn more than once when some members, led by Samajwadi Party chief Mulayam Singh Yadav, asked for Deora's resignation over the matter.

Their main contention was that the petroleum ministry was unable to ensure gas supplies from the Reliance gas fields to the crucial Dadri power project in Uttar Pradesh on the outskirts of the national capital.