Public Sector Endeavor ONGC saved its shareholders at the hours of darkness after successful a large-amount courtroom case in opposition to Reliance Industries Restricted, Zee Enterprise has learnt via its sources.
Oil and Pure Fuel Fee (ONGC) gained a case in opposition to RIL on February 14, 2025, within the Delhi Excessive Courtroom within the 2018 KGD6 fuel dispute.
As per the courtroom ruling, ONGC is entitled to get well between Rs 20,000 crore and Rs 25,000 crore (together with curiosity).
As per Securities Trade Board of India (Sebi) guidelines, the state-run PSU is meant to reveal such materials, price-sensitive info to its shareholders. However neither ONGC nor the central authorities has issued any assertion concerning the event.
ONGC did not make any disclosure to BSE or NSE.
ONGC-RIL KGD6 fuel dispute case
On 14 February, a division bench of Justice Rekha Palli and Justice Saurabh Banerjee overturned an earlier single bench ruling within the KGD6 fuel dispute case.
In Could 2023, the bench had upheld the Arbitration Award in RIL’s favour.
Nevertheless, the division bench discovered ‘patent illegality’ within the Arbitral Award.
The bench deemed enough grounds to intrude with the sooner resolution underneath Part 37 of the Arbitration and Conciliation Act.
The federal government had accused RIL and its international companions — UK-based BP and Canada’s Niko Sources — of committing an ‘insidious fraud’ and ‘unjust enrichment of over $1.729 billion’ by siphoning fuel from the deposits the corporate had no proper to use.
“We’re setting apart the impugned order of Could 9, 2023, handed by the one choose, and the arbitral award handed by the arbitral tribunal on July 24, 2018, as they’re opposite to the settled place of legislation,” the division bench stated in its judgment.
The bench additional stated that the award ‘strikes on the coronary heart of public coverage’ and had ‘given a premium to a contractor that amassed huge wealth by committing an insidious fraud in addition to a prison offense.”
What was matter?
The federal government accused RIL of committing ‘fraud’ and “unjust enrichment” by draining and promoting fuel that had migrated from ONGC blocks — Godavari PML and KGDWN-98/2 — to RIL’s blocks.
After this, the federal government, in November 2016, had raised a requirement of $1.55 billion, plus curiosity, and an extra $175 million towards revised cumulative revenue petroleum.
Legal professional Basic R. Venkataramani and senior counsel Ok.Ok. Venugopal, representing the federal government, argued that RIL had recognized concerning the connectivity of its and ONGC’s blocks since 2003.
A day after the division bench’s ruling in favour of ONGC, RIL issued a press release to its shareholders, studying: “After analyzing the judgment, the corporate will file an attraction earlier than the Hon’ble Supreme Courtroom of India.”
Even after that, ONGC and the central authorities made no disclosure concerning the case victory to ONGC’s shareholders
