Delhi High Court Halts Government's Decision on Vedanta's Oil Block

Vedanta Limited's writ petition challenges the Union government's denial of a crucial contract extension for an offshore oil block. The Delhi High Court has put a temporary hold on the government's order, which involved handing over operations to ONGC, citing alleged contractual breaches.

In a significant legal development, the Delhi High Court on Wednesday intervened in a dispute involving Vedanta Limited and the Union government, maintaining the status quo on an earlier government decision. This decision denied an extension of a Production Sharing Contract (PSC) and proposed the takeover of the offshore oil and gas block by Oil and Natural Gas Corporation (ONGC).

The dispute traces back to a writ petition filed by Vedanta, challenging the Union government's refusal to extend its PSC for the CB/OS-2 offshore block by another decade. Originally signed in 1998, the contract's denial, dated September 19, 2025, forced Vedanta to cease operations, prompting allegations of arbitrary decision-making without due process.

Arguments presented on behalf of Vedanta claimed that the extension application, timely submitted in 2021, lingered unresolved. During this period, interim extensions were granted even post the expiry of the contract in 2023. The Delhi High Court's halting of the order maintains the current operational setup, pausing the proposed transfer to ONGC for now.

(With inputs from agencies.)