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Bombay HC dismiss $1.5B petition against Reliance

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Bombay High Court has officially dismissed a Public Interest Litigation (PIL) seeking a CBI investigation into Reliance Industries Limited (RIL) and its director, Mukesh Ambani, over allegations of stealing natural gas worth over $1.55 billion (approx. ₹13,000 crore) from ONGC’s wells.

The bench, led by Chief Justice Shree Chandrashekhar and Justice Suman Shyam, pronounced the order in open court today, bringing an end to the high-stakes legal attempt to criminalize a decade-old energy dispute.


1. The Allegations: “Sideways Drilling”

The petition, filed by citizen Jitendra P. Maru, alleged that RIL engaged in a “massive organized fraud” between 2004 and 2014 in the Krishna Godavari (KG) Basin, off the Andhra Pradesh coast.

  • The Claim: RIL allegedly used “directional” or “sideways” drilling to extract gas from adjacent blocks belonging to the state-run Oil and Natural Gas Corporation (ONGC).
  • The Evidence Cited: The petitioner relied on the 2016 A.P. Shah Committee report, which had previously quantified the “migratory gas” extracted by RIL at 338.332 million standard cubic meters, valued at roughly $1.55 billion plus interest.
  • The Demand: The plea sought the registration of an FIR for theft, dishonest misappropriation, and criminal breach of trust, along with the immediate seizure of all related documents by the CBI.

2. Why the Court Dismissed the Petition

While the court’s full written judgment is awaited, the bench indicated that the matter did not warrant a criminal probe by a central agency at this stage.

  1. Civil vs. Criminal: RIL has consistently maintained that the gas was “migratory” (naturally moving between fields) and that its extraction was a technical and civil matter, not a criminal one.
  2. Arbitral History: RIL had previously won a major international arbitration against the government on this very issue in 2018. Although the Delhi High Court set aside that award in February 2025, the Bombay High Court reportedly viewed the dispute as one that should be resolved through established legal and regulatory frameworks rather than a fresh criminal investigation.
  3. Jurisdiction & Delay: The court also scrutinized the significant delay in filing the petition, given that the underlying facts of the gas migration were discovered as far back as 2013.

3. Timeline of the KG Basin Dispute

DateEvent
2013ONGC first suspects gas is being diverted from its block to RIL’s KG-D6.
2016A.P. Shah Committee confirms RIL extracted ONGC gas but says it wasn’t “theft” in a criminal sense.
2018International tribunal rules in favor of RIL, saying it had no obligation to stop “migratory” gas.
Feb 2025Delhi High Court sets aside the 2018 award, calling it against “public policy.”
Nov 2025Bombay High Court issues initial notice on Maru’s petition for a CBI probe.
Mar 27, 2026Bombay High Court dismisses the petition for a CBI probe.

4. What This Means for Reliance

The dismissal is a significant relief for RIL, especially as it navigates a broader period of market volatility.

  • Legal Finality: By refusing the CBI probe, the court has prevented the escalation of a civil energy dispute into a high-profile criminal trial involving the company’s top leadership.
  • Focus on Green Energy: Analysts suggest this allows the company to maintain its focus on its $10 billion “Giga-Complex” and green hydrogen transition without the shadow of a prolonged criminal investigation.
  • Stock Reaction: RIL shares (NSE: RELIANCE) showed stability following the announcement, trading slightly up by 0.4% as of the afternoon session.

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