In a big setback for the Central government, the Supreme Court on Wednesday upheld the foreign arbitration award in favour of Vedanta and Videocon for the development of the Ravva oil and gas fields off the coast of Andhra Pradesh between 2000 and 2007.
A bench of the apex court, headed by RF Nariman, dismissed the Centre's appeal against the foreign arbitration award that allowed Vedanta and Videocon to recover USD 499 million for the development of the Ravva oil and gas fields.
The Central government, through the Ministry of Petroleum and Natural Gas, had in June this year moved the apex court against the foreign arbitration award to recover USD 499 million, instead of USD 198 million capped by the government, for the development of Ravva oil and gas fields.
The dispute reportedly arises out of a production sharing contract between Cairn India, Vedanta's predecessor, and the government over exploration of the Ravva oil fields off the coast of Andhra Pradesh between 2000 and 2007.
