Tag Archives: Delhi High Court

Business News, Government

Government Demands ₹24,500 Crore from Reliance – What’s Next?

Leave a comment

In a significant development, the Indian government has issued a demand notice of $2.81 billion (approximately ₹24,500 crore) to Reliance Industries Ltd (RIL) and its partners, BP Plc and NIKO (NECO) Ltd. This demand pertains to the alleged extraction and sale of natural gas that migrated from Oil and Natural Gas Corporation’s (ONGC) blocks to RIL’s KG-D6 field in the Krishna Godavari basin. ​

Background of the Reliance Dispute

The dispute dates back to 2013 when ONGC suspected that natural gas from its KG-DWN-98/2 (KG-D5) and G-4 blocks was migrating into RIL’s adjacent KG-D6 field. ONGC claimed that at least four wells drilled by RIL near the boundary were extracting its resources. In May 2013, ONGC filed a writ petition in the Delhi High Court seeking compensation for the alleged loss. ​

Arbitration and Legal Proceedings

Following the court’s direction, an independent panel investigated the claims, leading the government in 2016 to demand $1.55 billion from RIL and its partners for the alleged gas migration. RIL contested this claim before an arbitral tribunal, which, in July 2018, ruled in favor of the company, stating it was not liable for any compensation. The government challenged this arbitration ruling in the Delhi High Court, arguing that it contradicted public policy and favored the contractor unjustly. In May 2023, a single-judge bench upheld the arbitration award, dismissing the government’s appeal. However, in February 2025, a division bench of the Delhi High Court overturned the previous judgment, ruling against RIL and its partners. ​

Current Demand Notice

Consequent to the division bench’s judgment, the Ministry of Petroleum and Natural Gas issued a demand notice of $2.81 billion to RIL and its partners. This amount includes compensation for the gas allegedly extracted from ONGC’s reserves, additional profit petroleum due to disallowed costs after KG-D6’s output fell below target, and interest calculated at LIBOR plus 2 percent. ​

Reliance’s Response

RIL has received the demand notice and, based on legal advice, considers the division bench’s judgment and the provisional demand unsustainable. The company plans to challenge the judgment in the Supreme Court and does not anticipate any liability arising from this case.

Conclusion

The ongoing legal battle between the Indian government and RIL over the alleged gas migration underscores the complexities involved in resource extraction and ownership. As the case progresses to the Supreme Court, its outcome will have significant implications for the involved parties and the broader energy sector in India.

Also Read:

Jio Hotstar Faces Backlash Over Performance and Content Issues
Legal

Delhi High Court Questions Indian Railways on Excess Ticket Sales After Deadly Stampede

Leave a comment

Delhi High Court Questions

In the aftermath of a tragic stampede at New Delhi Railway Station that claimed at least 18 lives, the Delhi High Court has raised serious concerns regarding the Indian Railways’ practice of selling tickets beyond platform capacity. The court’s intervention comes as part of a public interest litigation (PIL) aimed at preventing such catastrophic incidents in the future.

The Tragic Incident

On February 15, 2025, a massive crowd gathered at New Delhi Railway Station, with thousands of pilgrims intending to travel to the Maha Kumbh festival in Prayagraj. Due to train delays and confusion over platform assignments, the station became overwhelmingly congested. The situation escalated when passengers, attempting to switch platforms via a footbridge, slipped and fell, leading to a deadly stampede. The victims ranged in age from a seven-year-old child to a 79-year-old adult, with the majority being women and children.

Court’s Intervention

In response to the incident, the Delhi High Court issued notices to the Central Government, Indian Railways, and the Railway Board. The court questioned the rationale behind selling tickets exceeding the station’s handling capacity, especially during events known to attract massive crowds. The PIL, filed by the organization Arth Vidhi, emphasizes the need for stringent measures to prevent overcrowding and ensure passenger safety.

Overcrowding and Ticket Sales

Reports indicate that on the day of the incident, approximately 2,600 tickets were sold beyond the station’s maximum capacity of 5,000, leading to severe overcrowding on platforms designed to comfortably accommodate 3,000 passengers. This overbooking, combined with inadequate crowd management, created a hazardous environment for travelers.

Government and Railway Response

Following the tragedy, Prime Minister Narendra Modi expressed his condolences and emphasized the need for a thorough investigation. Railway Minister Ashwini Vaishnaw announced the formation of a high-level committee to examine the causes of the stampede and to recommend measures to prevent such incidents in the future. Immediate steps, including the deployment of additional trains and personnel to manage crowd surges, have been implemented to address the situation.

Conclusion

The Delhi High Court’s scrutiny of Indian Railways’ ticketing practices highlights a critical issue of passenger safety amid large-scale events. This incident underscores the urgent need for comprehensive crowd management strategies and adherence to safety protocols to prevent future tragedies.