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Vedanta gains on buzz of favorable SC ruling

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Vedanta rose 1.79% to Rs 133.65 after the company reportedly won a case in the Supreme Court pertaining to a $499 million international arbitral award, which was challenged by the government.

A three-judge Superme Court (SC) Panel headed by Justice S Abdul Nazeer, reportedly rejected the government's petition challenging the enforcement of a Malaysian arbitral award passed in favour of Vedanta in relation to the Ravva oil and gas fields. SC held that the enforcement of this award will not go against the public policy of India.

The Centre had moved the Supreme Court challenging the decision of the Delhi High Court which allowed Vedanta (erstwhile Cairn India) and Videocon Industries to recover $499 million instead of $198 million capped by the government for development of Ravva oil and gas fields in the state of Rajasthan.

This contract was for a period between 2000 and 2007. When the dispute arose in the year 2008, a foreign award was passed by a Tribunal in Malaysia which ruled in favour of the company. This award was challenged by the Indian government before Malaysian courts, but to no avail. When Cairn moved the Delhi High Court for enforcement of the award, the same was allowed, prompting the Ministry to approach the Supreme Court in appeal.

Vedanta, a subsidiary of VRL, is one of the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia and Australia.

On a consolidated basis, Vedanta reported a net loss of Rs 12,521 crore in Q4 March 2020 as against net profit of Rs 2,615 crore in Q4 March 2019. The profit was impacted by exceptional loss of Rs 17,132 crore in Q4 FY20 due to impairment of assets at oil & gas, copper and iron ore business.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 16 2020. 12:28 IST