Court to Hear Centre’s $3.8 Billion Claim Against Reliance Industries

The Delhi High Court will review an appeal by the Indian government against the dismissal of its plea to recover $3.8 billion from Reliance Industries and B.G. Exploration. The dispute arises from the Panna-Mukta and Tapti oil fields' profit-sharing terms. A hearing is scheduled for February 2026.

The Delhi High Court will examine an appeal from the Indian government challenging the dismissal of its request to recover $3.8 billion from Reliance Industries and B.G. Exploration. This legal dispute centers on a disagreement related to profit-sharing terms for the Panna-Mukta and Tapti oil and gas fields.

Justices Navin Chawla and Madhu Jain have rejected the preliminary objections made by Reliance Industries and B.G. Exploration, stating there is no merit in questioning the maintainability of the Centre's appeal. The case will now be heard on its substantive grounds, with a hearing scheduled for February 2026.

The conflict dates back to Production Sharing Contracts signed in 1994 between the government, Reliance Industries, and Enron. Disagreements emerged over profit-sharing and royalties, leading to an arbitration award in 2016. A single judge had previously dismissed the enforcement petition as premature but allowed the Centre the option to pursue it later.

(With inputs from agencies.)