Ram Jethmalani strongly feels that the Government's affidavit compromised NTPC's rights in their battle with RIL in the Bombay High Court. The affidavit, filed by Solicitor General Gopal Subramaniam, stated that the Government will take up the matter, either when NTPC obtains and establishes its rights against Reliance Industries at the Bombay High Court, or when the government feels intervention is necessary in public interest.

Pointing out defects in the affidavit relating to basic technical requirements, he called upon the court to summarily reject the affidavit. Venting his ire, he accused the Government of having been advised by RIL counsel, Harish Salve. Gopal Subramaniam relented and sought to file an additional affidavit in the matter.

Backing Jethmalani, Senior Counsel Mukul Rohatgi commenced his arguments on the note that since RIL failed to sign a bankable agreement for the Dadri Power Project, RNRL's shareholders would lose.

Contesting RIL's arguments, Rohatgi said RIL would not make any loss by selling gas to RNRL at $2.34, which is less than the government-fixed price of $4.2. "Loss means loss of profit of Rs. 25,000 crore, but not loss of the project," he said, relying on RIL's documents.

On Thursday, Rohatgi clarified to the Supreme Court that the gas was not meant for the Dadri Power Project alone, but for all power projects of the Anil Ambani Group. "The gas supplied to ADAG by the Mukesh Ambani group shall not be used for trading other than with the Anil Ambani group," he added. He however refused to settle for $4.2 per unit, even if NTPC agrees. "No, it's not a case of sink or swim together. It will not and cannot bind us," he said.

Admitting the government's authority to fix gas price and its utilisation, he argued that the decision of the empowered group of ministers does not apply to RNRL. He asked that the court cancel the contract between the government and RIL, if they are in breach.