New Delhi: The government has received a major setback in the Vedanta case in the Supreme Court. The Supreme Court has upheld the order of a foreign arbitrator in the case of recovery of expenses from Andhra Pradesh’s Rava oil and gas sector, giving Vedanta the right to recover further expenses.
That would cost the government about 300 300 million (approximately Rs 2,220 crore). The Supreme Court said that the Malaysian court had properly investigated the case and its order did not harm any policy of the Government of India as it was the next case. The court said the enforcement court would not be able to re-evaluate any of the evidence.
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Importantly, the Ministry of Petroleum and Natural Gas had appealed against the recovery of 49 499 million (approximately Rs 3680 crore) by Vedanta Limited and Videocon Industries for the development of the Rava oil and gas sector in Andhra Pradesh through Malaysian mediation. The government had set a limit of only .8 198 million (about Rs 1,460 crore) in the case. The development took place between 2000 and 2007.
Earlier, in a June order, the Supreme Court ordered all parties to restore the status quo. The apex court had asked Vedanta why he needed Rs 49.9 crore. Earlier, the Delhi High Court had also allowed Kern India, which had been working in the sector before Vedanta, to execute an international arbitration order for further recovery. But the ministry challenged the order in the Supreme Court.