Petroleum Minister Announces Aggressive Recovery Plans
The Government of India is set to recover $2.81 billion (approximately ₹24,490 crore) from Reliance Industries and its partners following a major legal ruling. The Delhi High Court has ruled in favor of the government in a contentious case involving natural gas extraction, paving the way for a significant financial recovery from India’s most valuable company. Petroleum Minister Hardeep Singh Puri has confirmed that the government will pursue the matter to its conclusion.
Government’s Determination to Recover the Dues
Speaking on the matter, Petroleum and Natural Gas Minister Hardeep Singh Puri stated that his ministry is fully committed to reclaiming the demanded amount from Reliance Industries and its associates. His statement signals a firm stance by the government in this high-stakes corporate dispute.
What is the Controversy About?
The dispute revolves around alleged unauthorized natural gas extraction. The Government of India claims that Reliance Industries and its partner firms extracted gas from fields beyond their allotted areas. As a result, the government initially demanded $1.55 billion from Reliance.
Reliance challenged this claim at an International Arbitration Court, which ruled in favor of the company in July 2018, dismissing the government’s $1.55 billion demand. However, the government then escalated the matter to the Delhi High Court, which on February 14, 2025, ruled in favor of the government. Consequently, a new demand notice for $2.81 billion was issued.
On March 3, 2025, Reliance confirmed receiving this notice.
Petroleum Minister’s Statement on the Court Verdict
During a public event in Delhi, Hardeep Singh Puri strongly defended the government’s stance, stating:
“The court’s decision on gas migration clearly establishes the government’s rights. We have already initiated the demand process for $2.81 billion, and we will pursue this case until the very end.”
However, he acknowledged that Reliance has the right to appeal the decision in the Supreme Court.
The KG-D6 Block and the ONGC Dispute
The legal battle stems from the Krishna-Godavari (KG) basin dispute, specifically the KG-D6 block, which Reliance has rights over. However, ONGC (Oil and Natural Gas Corporation) has alleged that Reliance extracted gas from the KG-DWN-98/2 block, an area allotted to ONGC. This has led to a prolonged legal struggle between the corporate giant and the government-owned enterprise.
What Happens Next?
- Reliance may appeal the Delhi High Court ruling in the Supreme Court.
- The government will push aggressively for the recovery of the ₹24,490 crore from Reliance and its partners.
- The outcome of this case could set a precedent for future corporate disputes in India involving natural resources and regulatory compliance.
With huge financial stakes and a landmark legal battle, all eyes are now on how Reliance Industries, the Government of India, and the Supreme Court navigate this high-profile case.
