RIL wins arbitration case against govt's claim of illegal gas production

In a major blow to the government in the gas migration dispute between Reliance Industries (RIL) and state-owned ONGC, an international arbitration tribunal on Tuesday ruled in favour of a consortium led by the Mukesh Ambani-led conglomerate. 

The tribunal rejected the government’s claim of illegal gas production by the consortium from the neighbouring block of ONGC in the Krishna-Godavari (KG) basin. In addition, it awarded costs of $8.3 million (Rs 564.40 million), to be paid by the government to the consortium.

The arbitration was over a dispute regarding a penalty of $1.55 billion slapped by the government on RIL and