Reliance Industries Limited (RIL) has confirmed a $2.81 billion demand made by the Indian government, following a recent ruling by the Delhi high court.

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The case pertains to the long-standing dispute concerning alleged gas migration from the Oil & Natural Gas Corporation (ONGC) block to the KG-D6 consortium blocks, in which RIL is a key partner.

The company said in a filing, "Consequent upon the above mentioned Division Bench judgment, the Ministry of Petroleum and Natural Gas has raised a demand of US $2.81 billion on the PSC  Contractors namely Reliance Industries Limited, BP Exploration (Alpha) Limited and NIKO (NECO) Limited. The letter of demand was received by the Company at 11:30 a.m. on March 3, 2025."

The company initially won the case back in 2018 when the court ruled in favour of RIL and its partners.

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The filing said, 'The Company had won arbitral award issued by an eminent international arbitration panel on July 24, 2018 against the Government of India’s (GOI’s) claim on the KG-D6 Consortium for an amount of approximately $1.55 billion on account of alleged gas migration from ONGC’s blocks. A single judge of the Hon’ble Delhi High Court, on May 09, 2023, dismissed the GOI’s appeal challenging the arbitral award. GOI had filed an appeal before the Division Bench of the Hon’ble Delhi High Court.'

RIL plans to challenge the court demand, saying that the demand is 'unsustainable.'

The filing said, '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 Division Bench of Hon’ble Delhi High Court. The Company does not expect any liability on this account.'

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Reliance Industries stocks fell nearly one per cent on Tuesday, mirroring a deep sell off in broader benchmarks.