Big relief for Vedanta from Delhi High Court. | File Pic
New Delhi: The Delhi High Court has given significant interim relief to Vedanta by staying the Central government’s order that asked the company to hand over the CB-OS/2 offshore oil block to ONGC. The court has directed both the government and Vedanta to maintain status quo, meaning no changes should be made to the ownership or operations of the block for now.
Court asks both sides to maintain status quo
The High Court clearly stated that until the matter is finally decided, the existing situation related to the offshore oil block must continue. This means the government cannot proceed with transferring the block to ONGC, and Vedanta can continue to retain its position over the asset.
Vedanta’s arguments need to be heard
During the hearing, the Centre raised objections about whether Vedanta’s petition was maintainable. However, the Delhi High Court rejected this objection at the current stage. The court observed that Vedanta’s arguments against the rejection of the Production Sharing Contract (PSC) extension deserve proper consideration. According to the court, this is a case where no final decision should be taken without hearing the company’s side in detail.
What is the dispute about?
Vedanta was awarded the CB-OS/2 offshore oil block in 1998 under a Production Sharing Contract. This contract expired in the contract year 2023. The company applied for an extension of the PSC in 2021 and claimed that it had earlier received interim extensions on five occasions.
However, in September 2025, the Central government rejected Vedanta’s request for extension. It also directed the company to stop petroleum operations, vacate the area, and hand over the block to ONGC.
Claim of denial of hearing
Vedanta told the court that before rejecting its request for extension, the government did not give the company a personal hearing. The company argued that this goes against the principles of natural justice, which require that a party should be heard before any adverse decision is taken. On this basis, Vedanta challenged the government’s order.
Following the interim order, Vedanta’s control over the CB-OS/2 offshore oil block will continue for now.
