Shares of state-owned Oil and Natural Gas Corporation (ONGC) are trading lower by over 3% at Rs 289, on PTI reports that Gujarat High Court has directed the company to pay royalty dues worth Rs 5,000 - 6,000 crore to the state government.
The stock opened at Rs 292 and touched a low of Rs 288 on the NSE. A combined 1.8 million shares have changed hands on the counter so far on the NSE and BSE.
A division bench headed by Chief Justice Bhaskar Bhattacharya and Justice JB Pardiwala yesterday directed ONGC to pay differences in royalty of crude within two months and also pay royalty, henceforth, to state government at market rate, the PTI report suggests.
According to the Oil Field Act, ONGC is required to pay 20% royalty of the market value of crude oil it extracts from oil blocks to the state government.
The stock opened at Rs 292 and touched a low of Rs 288 on the NSE. A combined 1.8 million shares have changed hands on the counter so far on the NSE and BSE.
A division bench headed by Chief Justice Bhaskar Bhattacharya and Justice JB Pardiwala yesterday directed ONGC to pay differences in royalty of crude within two months and also pay royalty, henceforth, to state government at market rate, the PTI report suggests.
According to the Oil Field Act, ONGC is required to pay 20% royalty of the market value of crude oil it extracts from oil blocks to the state government.
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