Vedanta wins ₹3\,700 crore arbitration award in Ravva case

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Vedanta wins ₹3,700 crore arbitration award in Ravva case

Bloomber September 16 | Updated on September 16, 2020 Published on September 16, 2020

Supreme Court rejects Centre’s plea, upholds High Court ruling

The Supreme Court ruled on Wednesday that Vedanta Ltd is entitled to recover a $499 million (about ₹3,700 crore) arbitration award from the Central government for developing oil and gas fields in Rajasthan.

The Supreme Court rejected the Indian government’s petition, which had said that billionaire Anil Agarwal’s company, along with Videocon Industries Ltd, is entitled to recover only $198.5 million as agreed in the production-sharing contract for the Ravva oil and gas fields.

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Cairn India Ltd, which was later acquired by Vedanta, had in 2011 won an arbitration award in Malaysia for higher recoveries and sought its enforcement in India.

The company won a case for enforcement in a High Court, but the Central government appealed, saying the claim was against Indian law.

The Supreme Court said it cannot re-examine evidence recorded by a foreign arbitration tribunal and the enforcement of the award in favor of Vedanta won’t be contrary to India’s public policy, as claimed by the Centre.

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Published on September 16, 2020
Vedanta Ltd
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