India’s big energy company Reliance Industries (RIL) has been accused of stealing gas from ONGC, which is worth about $1.55 billion. Bombay High Court has issued a notice in this case and is considering directing the CBI to conduct a complete investigation. According to the petition, from 2004 to 2013-14, RIL drilled in the KG-D6 block in such a way that gas moved sideways from ONGC’s Northern Block to RIL’s block. The estimated loss is ₹13,000–14,000 crore, plus interest of $174.9 million. Petitioners want criminal charges of theft, fraud and breach of trust to be imposed on RIL and its directors. RIL says that gas is naturally migratory and this is not a new criminal case, but an old civil-arbitration dispute. Energy consultancy D&M also said that gas extraction had taken place, but there is disagreement on the legal interpretation. The court notice does not decide whether RIL is guilty. This is just the initial step—the Court is asking: – Should the CBI conduct a full investigation? – Should FIR be registered? – Should contracts and drilling data be seized? If CBI investigation starts, it can become a big precedent for Corporate India. Market sentiment, RIL shares and policy-making may also be affected.
