Vedanta wins Ravva case for $499 million award claims — Supreme Court rejects government’s plea

• The Supreme Court of India upheld the foreign arbitration award in favour of Vedanta and Videocon for the development of the Ravva oil and gas fields off the coast of Andhra Pradesh between 2000 and 2007.
• The apex court of India rejected the central government petition, which said that billionaire Anil Agarwal’s company, along with Videocon Industries, is entitled to recover only $198.5 million.
• Post the announcement of the decision, Vedanta shares jumped 3%, touching an intraday high of ₹138.80.

In a major relief to Vedanta and Videocon, the Supreme Court of India upheld the foreign arbitration award for the development of the Ravva oil and gas fields off the coast of Andhra Pradesh between 2000 and 2007 in their favour— and rejected the central government’s petition.

The apex court of India dismissed the central government plea, which said that billionaire Anil Agarwal’s company, along with Videocon Industries, is entitled to recover only $198.5 million. The court ruled that the companies are entitled to recover $499 million (₹3,700 crore) instead of the capped amount stated by the Centre.

Post the announcement of the decision, Vedanta shares jumped 3%, touching an intraday high of ₹138.80.

The Ravva oil and gas fields case reportedly started after the company Cairn India, which was later acquired by Vedanta, in 2011 won an arbitration award in Malaysia for higher recoveries, and it sought its enforcement in India.

After the Delhi High Court refused to interfere with the arbitral award in favour of Vedanta, the central government then appealed in the Supreme court in June, saying the claim was against the Indian law.

Announcing its decision today, India’s top court said it couldn’t re-examine the evidence recorded by a foreign arbitration tribunal and that the Malaysian court rightly examined the Ravva oil field arbitration award. It also added that the enforcement of the award in favour of Vedanta wouldn’t be contrary to India’s public policy, as claimed by the central government.

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