RIL moves Supreme Court for $1.73 Billion dispute with ONGC

20 May 2025 , 01:52 PM

Reliance Industries Limited informed that the business has challenged a recent decision by the division bench of Delhi High Court. It moved to the Supreme Court for further relief. 

As per the reports, Delhi High Court has set aside a 2018 international arbitral award in its favour. 

The stated dispute is related to a $1.729 Billion claim over gas migration from ONGC-operated blocks into RIL’s Krishna Godavari D6 (KG-D6) block in the Bay of Bengal.

The division bench consisted of Justices Rekha Palli and Saurabh Banerjee. Earlier in February, the bench squashed the previous ruling of a single judge who upheld the arbitral tribunal’s decision. 

In its appeal to the apex court, RIL contested that the division bench is under no jurisdiction to re-open the merits of the case as the international arbitration has adjudicated the matter. The conglomerate contended that the 2018 tribunal decision was binding under the terms of the production sharing contract (PSC).

Earlier, the tribunal ruled that as per the terms of PSC, contractors are not restricted from producing gas that has been migrated into their licensed areas. Therefore, squashing the $1.729 Billion claim raised by the government.

The matter actually pertains to the year 2013.

At around 1.05 PM, Reliance Industries was trading 0.44% lower at ₹1,434.50 per piece, against the previous close of ₹1,440.80 on NSE. The counter touched an intraday high and low of ₹1,445, and ₹1,431.20, respectively.

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