Mumbai, March 4
Shares of Reliance Industries Limited continued to slide on Tuesday, following a ruling from the Delhi High Court that reversed a previous judgment.
Amid the legal uncertainty, the company’s shares dropped by as much as 1 per cent, reaching Rs 1,159.55 per share during the intra-day trade.
This ruling concerns an arbitral award won by Reliance, along with BP Exploration (Alpha) Limited and NIKO (NECO) Limited, in a dispute with the government over alleged gas migration from ONGC’s blocks in the KG-D6 area.
In the original case, the government accused the consortium of causing gas migration, which led to a demand for compensation of $1.55 billion.
On May 9, 2023, a single-judge bench of the Delhi High Court dismissed the government's appeal, upholding the arbitral award in favour of the consortium.
However, the government did not accept the ruling and filed an appeal with a division bench of the Delhi High Court.
The division bench reversed the earlier decision, which significantly impacted Reliance’s share price.
Following the court's decision, the Ministry of Petroleum and Natural Gas issued a letter of demand to Reliance, BP Exploration, and NIKO, raising the claim amount to $2.81 billion.