It was earlier speculated that Jaipal Reddy's term as the petroleum minister was terminated after he had not accepted a proposal put forward by the Reliance Industries to hike gas charges which it was selling to the power-plants of the state.

IAC leader and politician demanded that the Krishna Godavari Basin allotted to the company should be cancelled.

"Mukesh Ambani is running the country it seems... Jaipal Reddy was removed as he refused to hike the charges being levied by Reliance Industries to supply gas to NTPC," Kejriwal slammed Reliance at the press conference today.

He mentioned that the government was being blackmailed by the corporate group and demanded why the Congress was not looking into this issue.

He said that the Reliance got hold of the KG basin in 2000 under the NDA government after they agreed to supply gas to the National Thermal Power Corp for the next 17 years at $2.5 per unit.

But there was a price revision only after seven years to $4.25 per unit in 2007. Pranab Mukherjee who was the then finance minister had agreed to this proposal. There were plans to hike it to $14.25 per unit but the former petroleum minister had not agreed to this which resulted in his demotion to Science and Technology ministry, Kejriwal alleged.

"The company was allowed to hike the cost of producing gas and thus its profits," said Kejriwal.

Reliance Industries was not available for a comment.

(AW- Anil)