Mukesh Ambani-led Reliance Industries Ltd (RIL) and its partners, BP and Niko Resources, have initiated an arbitration process against the Centre's notice imposing a penalty of $1.55 billion on these companies for allegedly using migrated gas from state-run Oil and Natural Gas Corporation's (ONGC's) asset in KG-D6.
It was on November 3 that the government had slapped the penalty. Following this, RIL had come out with a statement that the contractor's liability has not been established by any process known to law and the quantification of the purported claim is without any basis and arbitrary. "RIL remains convinced of being able to fully justify and vindicate its position that the government’s claim is not sustainable," it said. The company is already locked in arbitration with the government on various other issues related to KG-D6.
It was on November 3 that the government had slapped the penalty. Following this, RIL had come out with a statement that the contractor's liability has not been established by any process known to law and the quantification of the purported claim is without any basis and arbitrary. "RIL remains convinced of being able to fully justify and vindicate its position that the government’s claim is not sustainable," it said. The company is already locked in arbitration with the government on various other issues related to KG-D6.
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