Indian billionaire brothers Mukesh and Anil Ambani are locked in a private feud over India's natural gas assets and the saga highlights how such ultra high net worth individuals’ control over major industries can pose broad economic risks.

The Indian government has filed an independent appeal in the country’s Supreme Court, according to the Times of India. The suit states that the brothers are squabbling over an asset that is part of national property.

Family businesses dominate India’s economy. The rapid growth of India in recent years has been a driving force behind moves of Western banks to set up wealth management operations in the country as well as cater to the large expat Indian population living around the world.

The three-year battle between Reliance Industries' Mukesh Ambani and Reliance Natural Resources' Anil Ambani over a gas-supply deal made during the 2005 Reliance split had reached the Bombay High Court last month. Both parties signed a memorandum of understanding that orders Reliance Industries to supply gas to Reliance Natural at almost half the interim order price set early this year.

The Indian government has said the brothers' actions are discouraging future investment into India instead of promoting the country's move toward industrialisation.

"Knowing full well that the gas does not belong to them... RIL and RNRL have appropriated, through the MoU, in a surreptitious and unauthorised manner, the entire gas sector, treating the same as their personal and family property,” Reuters quotes the government as saying.

Reuters also quoted UK risk consultancy firm Eurasia Group analyst Seema Desai to have said that if a private MoU can cover a national asset, then it implies that the wealthy have the power to bend rules - which is the greatest political risk.

A hearing has been scheduled on 1 September.