365Telugu.com online news,New Delhi, March 4, 2025: The Indian government has issued a demand notice of $2.81 billion (approximately ₹24,500 crore) to Reliance Industries Ltd (RIL) and its partners, including BP Plc, for alleged gains from producing and selling natural gas that may have migrated from an adjacent block owned by state-run ONGC.
This action follows a February 14 ruling by the Delhi High Court’s Division Bench, which overturned an earlier arbitration tribunal decision that had ruled in favor of Reliance and its partners, stating they were not liable for any compensation.
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ఇది కూడా చదవండి…హోర్డింగుల తొలగింపునకు గడువు – అనుమతి లేనివి తొలగింపు తప్పదు!
Background of the Dispute
The Ministry of Petroleum and Natural Gas has raised this demand following the court’s verdict, according to Reliance’s stock exchange filing. Originally, RIL held a 60% stake in the Krishna Godavari (KG) Basin’s deep-sea block KG-DWN-98/3 (KG-D6), while BP owned 30%, and Canada-based Niko had 10%. Later, BP and Reliance acquired Niko’s stake, revising their holdings to 66.66% and 33.33%, respectively.
The government initially sought $1.55 billion in 2016, claiming that gas had migrated from ONGC’s adjacent fields into the KG-D6 block operated by Reliance. Reliance challenged the claim through an arbitration tribunal, which ruled in July 2018 that it was not liable to pay any compensation.
Court Ruling and Reliance’s Response
After the tribunal’s ruling, the government appealed, and in May 2023, a single-judge bench of the Delhi High Court upheld the arbitration decision, dismissing the government’s appeal. However, in February 2025, a Division Bench of the High Court overturned that verdict, ruling in favor of the government.
ఇది కూడా చదవండి…పాత లే ఔట్లపై కబ్జాల జోరు – హైడ్రా ప్రజావాణికి 49 ఫిర్యాదులు
ఇది కూడా చదవండి…సైన్స్ ఫిక్షన్ నుంచి వాస్తవ ప్రపంచానికి.. స్మార్ట్ఫోన్ నుంచి వీడియో కాలింగ్ వరకూ!
Following this judgment, the Ministry of Petroleum and Natural Gas issued a fresh demand notice of $2.81 billion to Reliance, BP, and Niko. Reliance confirmed receiving the notice on March 3, 2025, and stated that it believes the Division Bench judgment and the demand are legally unsustainable. The company has announced its intention to challenge the ruling.
This legal battle marks a significant development in India’s energy sector, as it could impact future resource-sharing agreements and investor confidence in offshore exploration projects.