Will pursue $2.81 bn demand from Reliance Ind, partners till end: Puri – The Tribune-OxBig News Network

Petroleum and Natural Gas Minister Hardeep Singh Puri on Friday said his ministry would pursue its demand for $2.81 billion from Reliance Industries and its partners till the end as the court decision on the gas migration row ‘clearly’ establishes the government’s rights”.

The ministry raised the demand recently following the Delhi High Court’s decision in the matter last month. “Let me assure you (that) this is an absolutely clear court verdict. We have already filed for $2.81 billion and we will enforce this right till the end,” Puri said at an event here when asked if his ministry will ensure that Reliance Industries pays the amount to the government.

“Of course, going in appeal to an apex court is everybody’s right,” he added.

On February 14, the Delhi High Court set aside an order which upheld an arbitral award in favour of Reliance Industries and its partners for allegedly siphoning off gas from deposits they had no right to exploit.

A Bench of Justices Rekha Palli and Saurabh Banerjee allowed the appeal of the Centre challenging the May 9, 2023, judgment of a single-judge, which was passed in favour of Mukesh Ambani-owned Reliance Industries Ltd (RIL).

Reliance said the letter of demand was received by the company on March 3. “The company is legally advised that the Division Bench judgment and this provisional demand are unsustainable. The company is taking steps to challenge the judgment of the Division Bench of the Delhi High Court,” it said.

Reliance had previously said it would appeal the decision in the Supreme Court.

Gas migration dispute

In 2016, the Centre demanded $1.55 billion from RIL and its partners for the sale of gas that was allegedly moved from ONGC’s block. In 2018, an international arbitration tribunal that RIL had taken the issue before decided in its favour. The government appealed the arbitral verdict to the Delhi High Court in 2023, five years later.