Supreme Court Appoints Former Judge Ranjana Desai as Mediator in KG Basin Gas Dispute
The Supreme Court of India has appointed former Supreme Court judge Justice Ranjana Prakash Desai as the sole mediator in the long-standing Krishna-Godavari (KG) Basin gas migration dispute involving Reliance Industries Limited (RIL), its consortium partners and the Union Government.
A three-judge Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi passed the order on October 30, 2026, after being informed that repeated settlement discussions between the parties had failed to produce a mutually acceptable solution.
Mediation to Resolve the Dispute
The Court requested Justice Desai to act as the sole mediator and permitted her to seek assistance from two domain experts suggested by the parties. The experts are expected to assist in addressing the technical and commercial complexities surrounding the dispute.
The Attorney General for India, R. Venkataramani, assured the Court that the Union Government would extend full cooperation during the mediation process. The parties were directed to coordinate with Justice Desai to determine the schedule for the proceedings.
The Court's intervention follows several adjournments granted to allow the parties to explore an amicable settlement. The mediation process offers another opportunity to resolve the dispute without requiring an immediate adjudication of the pending appeals.
Background of the KG Basin Gas Dispute
The dispute originates from allegations that natural gas migrated from adjoining offshore blocks operated by the Oil and Natural Gas Corporation (ONGC) into the KG-D6 block operated by a consortium led by Reliance Industries.
ONGC alleged that gas from its neighbouring reservoirs had migrated into the consortium's production area and was subsequently extracted and commercially utilised between 2009 and 2013. The Union Government sought recovery of approximately USD 1.55 billion, including interest, from Reliance Industries and its consortium partners, BP Exploration and Niko Resources.
Reliance disputed the government's claims and invoked arbitration under the Production Sharing Contract governing the exploration and extraction operations.
Previous Judicial Developments
In July 2018, an international arbitral tribunal ruled in favour of the Reliance-led consortium, rejecting the government's principal claim concerning the extraction of migrated gas.
The Union Government subsequently challenged the arbitral award before the Delhi High Court. Although the award was initially upheld by a single-judge Bench, a Division Bench of the Delhi High Court set aside the award on February 14, 2025.
Aggrieved by the decision, Reliance Industries and its consortium partners approached the Supreme Court, challenging the High Court's ruling.
Legal Significance
The Supreme Court's decision highlights the importance of mediation as an alternative dispute resolution mechanism in complex commercial and natural resource disputes. The involvement of a former Supreme Court judge, assisted by technical experts, may help the parties navigate both the contractual and technical dimensions of the controversy.
The mediation process does not itself determine liability or finally resolve the underlying legal issues. The outcome will depend on whether the parties can reach a mutually acceptable settlement.