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. The court also asked all parties to file their replies on the government position on the matter by then.

Reliance Natural Resources Tuesday accused the oil ministry of continuing 'to misguide the people and key decision makers' including the Prime Minister's Office.

The next day, Petroleum Minister Deora met the prime minister for half-an-hour, during which he defended the government's intervention before the Supreme Court against the agreement between Reliance Industries and Reliance Natural Resources on distribution of gas.

According to a senior official in the oil ministry, Deora explained his ministry's position that the government had the right to determine the price and use of natural gas as it deemed fit.

Incidentally, the petroleum ministry has also filed a special leave petition in the Supreme Court with the plea that Krishna-Godavari gas was national property.