Bombay High Court Rejects Plea Seeking CBI Probe Against Reliance Industries in KG Basin Case

Court Dismisses Allegations of Gas Extraction from ONGC Fields, Declines Investigation Request

MUMBAI: The Bombay High Court on Friday dismissed a petition seeking a Central Bureau of Investigation (CBI) probe against Reliance Industries Limited (RIL) and its chairman Mukesh Ambani over allegations of illegal extraction of natural gas from Oil and Natural Gas Corporation (ONGC) fields in the Krishna-Godavari (KG) Basin.

A bench comprising Chief Justice Shree Chandrashekhar and Justice Suman Shyam pronounced the order in open court, rejecting the plea filed by petitioner Jitendra P. Maru, who had sought criminal investigation into what he described as a “massive organised fraud.”

Allegations of Gas Extraction from Adjacent Wells

The petition alleged that between 2004 and 2013-14, RIL had illegally extracted natural gas worth over USD 1.55 billion from ONGC-operated wells by drilling directionally from its own deep-sea blocks in the KG Basin, located off the Andhra Pradesh coast.

According to the petitioner, ONGC officials detected the alleged unauthorised extraction in 2013 and subsequently reported the matter to the Government of India.

The plea further sought directions for the registration of a criminal case against RIL and its directors under charges including theft, criminal breach of trust, and dishonest misappropriation.

Reference to Earlier Findings and Reports

The petitioner relied on findings from an independent study conducted by De Golyer and MacNaughton (D&M), which had concluded that gas migration from ONGC blocks into RIL-operated areas had occurred, leading to unauthorised extraction.

Additionally, the A.P. Shah Committee had reportedly quantified the value of the gas in question at over USD 1.55 billion, along with accrued interest.

The plea also highlighted that the alleged conspiracy had roots in Mumbai, thereby justifying the jurisdiction of the CBI to investigate the matter.

Legal Proceedings and Prior Judgments

The dispute between ONGC and RIL has been subject to prolonged legal proceedings and arbitration. Earlier, RIL had secured a favourable arbitral award in the case.

However, in February 2025, a Division Bench of the Delhi High Court set aside the arbitral award, ruling that it was against public policy and allowing the Union government’s appeal.

Despite these developments, the Bombay High Court declined to order a fresh criminal probe by the CBI in the matter.

Court Declines to Intervene

While the detailed reasoning of the court order is awaited, the dismissal of the petition indicates that the bench did not find sufficient grounds to direct a CBI investigation at this stage.

Legal experts note that courts generally exercise caution in ordering central agency probes, particularly in cases involving complex commercial disputes that have already undergone arbitration and judicial scrutiny.

Relief for Reliance Industries

The ruling is seen as a relief for Reliance Industries and its leadership, as it avoids the possibility of a fresh criminal investigation in the long-running dispute.

RIL has consistently maintained that the gas extracted from the KG Basin was “migratory” in nature and that its operations were in accordance with contractual and regulatory provisions.

Case Highlights Ongoing Legal Complexities

The case underscores the complexities involved in disputes over natural resource extraction, particularly in offshore energy blocks where geological factors such as gas migration can complicate ownership and liability.

As the matter continues to be debated in legal and policy circles, the High Court’s decision marks a significant development, reinforcing judicial restraint in directing investigative probes without clear prima facie evidence warranting such action.

(India CSR)