Centre's petition to block 20% stake sale of Reliance to Aramco

Both companies fail to pay $ 4.5 billion arbitral award: next hearing on February 6

New delhi date. December 21, 2019, Saturday

The Delhi High Court on Friday directed Reliance Industries Limited (RIL) and British Gas to explain their assets. The central government has filed a petition in the court demanding that Reliance stop the sale of other properties, including the sale of 20 per cent stake to the legendary oil company Saudi Aram. The High Court has issued this directive.

The central government filed a petition in September demanding that Reliance stop the sale of shares to Aram. The central government said that both caps failed to pay an arbitral award of $ 4.5 billion under the Panna-Mukta and Tapti (PMT) production partnership agreement.

The PMT agreement in 1994 expired on Saturday. In arguing the case, the government has demanded the court direct it to pay $ 4.5 billion arbitration award to RIL and British Gas.

A commercial bench of the High Court, which directed the director of the RIL to file an affidavit to explain the company's assets, said it will hear the case on February 6.

Referring to the reports of several newspapers, including the sale of 20% of Saudi Aramco's stake by the RIL to the central government, the High Court said that there was a debt of Rs 2.88 lakh crore on RIL. The company is selling its current and fixed assets to pay off its debt.

The government said it could sell its assets in the future and until then the company would have nothing to pay for the arbitral award. The Center has stated that it has no knowledge of RIL's business and has no control over it.