Former Indian Supreme Court judge to mediate Reliance gas dispute with government

what happened

India's Supreme Court has appointed former judge Ranjana Prakash Desai as the sole mediator to resolve a long-running $1.73 billion dispute over gas migration in the Krishna-Godavari basin. The dispute is between a consortium led by Reliance Industries and the government. According to Moody's, the two sides failed to reach an amicable settlement, and Attorney General R Venkataramani told the court that they had been unable to find a viable solution.

The bench, headed by Chief Justice Surya Kant with Justices Joymalya Bagchi and Vipul M Pancholi, referred the matter to mediation. The mediator may bring in two domain experts suggested by the parties. Both sides assured the court they would fully cooperate with the mediator. The case will return to court in four weeks to review progress.

The underlying dispute involves three appeals by Reliance and its partners, BP Exploration (Alpha) of the UK and Canada-based Niko (NECO), against a February 2025 Delhi High Court ruling. That ruling set aside a 2018 international arbitration award that had favoured the consortium.

why it matters

For investors, the main issue is the uncertainty surrounding major gas assets held by Reliance and its partners. Referring the case to a mediator could reduce the risk of a prolonged court fight, but the outcome remains open and depends on the parties' talks.

market impact

Reliance Industries: the prolonged dispute with the government adds uncertainty around its gas assets

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