India To Recover ₹24,522 Cr From Reliance After Court Ruling

The Indian government is set to recover Rs. 24,522 crore ($2.81 billion) from Reliance Industries and its partners after a recent Delhi High Court decision. Petroleum Minister Hardeep Singh Puri confirmed that his ministry will ensure the money is collected, as the court’s ruling gives them full authority to do so.

What’s the Dispute About?

This case goes back to 2014 when the government accused Reliance Industries, BP Exploration, and Niko Resources of unfairly extracting gas from ONGC’s KG-D6 block. Based on this, the government demanded $1.55 billion in compensation.

Reliance challenged the claim, and in 2018, an international arbitration panel ruled in its favor, saying the company was not at fault. In May 2023, a single-judge bench of the Delhi High Court upheld this arbitration ruling and dismissed the government’s appeal. However, the government took the case to a higher bench of the Delhi High Court, which has now overturned the earlier decision. This has increased the amount Reliance may have to pay to $2.81 billion.

Government’s Position

Minister Puri made it clear that the government has won similar cases before and will ensure that this ruling is enforced. With the latest court order in its favor, the government is confident about collecting the money.

Reliance’s Response

Reliance has stated that it will challenge the court’s ruling. The company is seeking legal advice and may take the case to the Supreme Court.

Another Penalty for Reliance

In a separate issue, Reliance New Energy Limited, a subsidiary of Reliance Industries, has been fined ₹125 crore for not setting up a battery cell plant under the government’s Production-Linked Incentive (PLI) scheme.

What Happens Next?

The government is determined to recover the money, but Reliance is preparing to fight back legally. If the company challenges the decision in a higher court, the case could drag on for months. The final outcome will depend on how the legal battle unfolds.