The Delhi High Court has upheld the Indian government's decision to reject Vedanta Ltd's request for a 10-year extension of its Production Sharing Contract (PSC) for the CB/OS-2 offshore oil and gas block.
The court ruled that the company's application was flawed due to improper profit deductions in its financial submissions, effectively ending the firm's attempt to prolong its operational rights in the block off the coast of India.
The judgment reinforces the regulatory stance on contract compliance for major energy producers in India.
By siding with the Centre, the court denied Vedanta the additional time it sought to continue extraction activities under the existing terms.
The decision highlights the scrutiny applied to financial reporting and profit-sharing calculations in upstream energy agreements.
This development follows a series of legal challenges involving Vedanta in the Indian judiciary.