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Supreme Court grants relief to Vedanta, Videocon in Ravva oil and gas fields case

Supreme Court grants relief to Vedanta, Videocon in Ravva oil and gas fields case

Supreme Court grants relief to Vedanta, Videocon in Ravva oil and gas fields case
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By CNBC-TV18 Sept 16, 2020 3:55:25 PM IST (Published)

The apex court said the Malaysian court had correctly examined the arbitration award and it does not offend public policy.

In what could be a major setback for the government, the Supreme Court on Wednesday upheld a foreign arbitration award in favour of Vedanta to recover $499 million, instead of $198 million capped by the Centre for development of Ravva oil and gas fields.

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The apex court said the Malaysian court had correctly examined the arbitration award and it does not offend public policy.
The verdict by the Supreme Court comes after the Delhi High Court had refused to interfere with the arbitral award linked to the production sharing contract for the oil fields that are located in the Krishna Godavari basin located in Andhra Pradesh.
Vedanta, then Cairn India, along with Videocon had entered into production-sharing contract (PSC) for Ravva oil fields. As per the government, the companies recovered $499 million from the deal instead of the $198 million that they were allowed to.
This in turn led to conflict between Vedanta and the government leading to arbitration in Malaysia which favoured Vedanta. After the additional appeals in Malaysia failed, followed by the refusal of the high court to take the case, the Centre had approached the top court in June.
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