Vedanta escalates Gujarat offshore block dispute to Delhi High Court Division Bench

The miner's legal challenge against the government's asset transfer to ONGC adds regulatory uncertainty to its energy portfolio, testing the limits of contract enforcement in India.

By Handelsavisen Newsroom · Automated 2026-07-23 07:48 UTC · 1 min read

Vedanta Ltd has filed an appeal with the Division Bench of the Delhi High Court, challenging a single-judge verdict that upheld the Indian government's decision to deny the company a contract extension for its CB/OS-2 offshore oil and gas block.

The move marks a significant escalation in the long-running dispute over the Gujarat offshore asset, which Vedanta had sought to retain through a 10-year extension of its Production Sharing Contract (PSC).

The original PSC expired on June 29, 2023.

While the government granted interim extensions during the review of Vedanta's request, it ultimately decided to transfer the asset to state-owned Oil and Natural Gas Corporation (ONGC).

The single-judge ruling confirmed this transfer, prompting Vedanta to seek a higher judicial review.

The company argues that the denial of the extension violates contractual rights and investment protections, though the government maintains the decision was procedurally sound.