Reliance Industries emerges victorious in gas migration dispute with ONGC

Reliance

The Delhi High Court has ruled in favour of Reliance Industries Ltd in a dispute over gas migration from fields operated by state-owned ONGC in the KG basin. The government had imposed a provisional penalty of $1.55 billion on Reliance for “unjust enrichment” from gas flowing from the ONGC-operated KG-D5 block to the private firm’s adjoining KG-D6 area. However, an arbitration panel awarded in favour of Reliance Industries Ltd, which was challenged by the government in the Delhi High Court. The court rejected the challenge and upheld the award in favour of Reliance Industries Ltd. This ruling is seen as a big relief for Reliance Industries Ltd.