NEW DELHI, May 26: The Supreme Court on Monday agreed to consider a fresh request from Reliance Industries Ltd seeking bilateral settlement of the long-running gas dispute involving state run Oil and Natural Gas Corporation (ONGC) and the Union government.
The case relates to allegations that Reliance Industries and its partners extracted natural gas migrating from adjoining ONGC fields in the Krishna-Godavari basin. The Centre had earlier demanded nearly 2.81 billion US dollars from the company over the alleged loss.
During the hearing, senior advocate Kapil Sibal, appearing for Reliance Industries, informed the court that a fresh request for conciliation had been submitted to the government. Attorney General R Venkataramani told the bench that the Centre was willing to consider the proposal.
The Supreme Court accepted the submission and allowed the process of possible bilateral discussions to move forward. Legal experts believe the move may open the possibility of an out-of-court resolution after years of litigation and arbitration.
The dispute has remained one of the most high-profile energy sector cases in India. The controversy centres around claims that gas from ONGC-operated blocks migrated into reservoirs being exploited by the Reliance-led consortium.
The government has maintained that public resources suffered losses due to the extraction process. Reliance, however, has consistently denied any wrongdoing and argued that its operations were carried out in accordance with existing contractual and technical guidelines.
The legal battle has witnessed multiple hearings, arbitration proceedings and government reviews over the years. Monday’s development is significant because it indicates willingness from both sides to explore a negotiated settlement mechanism.
Energy sector analysts say the outcome of the dispute could have wider implications for India’s hydrocarbon exploration policies and contractual frameworks governing offshore gas fields.
Industry observers noted that a conciliatory approach may help reduce uncertainty in the energy sector and improve investor confidence. They also pointed out that prolonged litigation in large infrastructure and natural resource disputes often affects project planning and investment decisions.
The Krishna-Godavari basin remains one of India’s most strategically important offshore energy regions. It contributes substantially to domestic natural gas production and plays a key role in India’s efforts to reduce dependence on imported fuel.
The Supreme Court is expected to monitor developments as discussions between the company and the government progress. Officials did not indicate any specific timeline for the conciliation process.
Political observers noted that the case has periodically generated debate over regulation, corporate accountability and resource-sharing policies in India’s energy sector.
Legal experts said the possibility of settlement reflects a broader trend where commercial disputes involving large infrastructure projects are increasingly being resolved through mediation and negotiated frameworks rather than extended courtroom battles.
The Centre and Reliance Industries are expected to continue discussions in the coming weeks before informing the court about further progress in the matter.