Bombay HC issues notice on plea seeking CBI probe into Mukesh Ambani's Reliance's alleged USD 1.55 billion ONGC gas theft

The Bombay High Court recently issued a notice on a petition that sought an investigation into Reliance Industries Limited (RIL) and its chairman, Mukesh Ambani, for stealing natural gas worth over USD 1.55 billion from state-owned Oil and Natural Gas Corporation (ONGC), according to a report by LiveLaw. The petition was filed by Jitendra P Maru.

What's the case?

According to the petition, from 2004 to 2013-14, RIL drilled or extracted gas directly from ONGC's Northern Areas, which belonged to ONGC, in its KG-D6 petroleum blocks. The estimated value of such alleged activity is estimated to be over USD 1.55 billion (approximately Rs 13,000-14 crore), along with interest of approximately USD 174.9 million.

The petition sought registration of a criminal case against RIL and its directors for theft, dishonest misappropriation, and breach of trust. The petitioner also requested that all relevant documents, including contracts, investigation reports, and the A P Shah Committee’s findings, be seized.

What Reliance said

RIL has clarified that the gas found in the blocks was migratory, meaning it naturally came from other blocks. Therefore, the activity was legal. The company has also stated that this matter is part of an old civil-arbitral dispute rather than a new one. I-banking and oil and gas specialist D&M (De Golyer & MacNaughton) also stated that gas extraction had occurred, but its legal implications are disputed. Later, the A P Shah Committee also found that RIL had extracted gas worth more than USD 1.55 billion, with an additional USD 174.9 million in interest.

What could happen next?

The CBI will have to answer whether or not to initiate an investigation. If initiated, an FIR could be filed against RIL and its directors. Contracts, drilling data, gas flow data, border-block data between ONGC and RIL, etc., could be seized as per the agreement. RIL's share price, investor confidence, and policy spectrum in the resource sector could be affected.

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