The Supreme Court of India has appointed former judge Justice Ranjana Prakash Desai as the sole mediator in the long-running Krishna-Godavari (KG) Basin gas migration dispute involving Reliance Industries Limited (RIL), its consortium partners and the Union government.
The order was passed on Friday, October 30, 2026, by a Special Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul Pancholi. The mediator has been asked to take assistance from two domain experts to help the parties explore a possible resolution.
The appointment follows the Centre's submission that discussions between the parties had not produced a viable solution. Attorney-General R. Venkataramani, appearing for the Union government, informed the Bench that an agreement acceptable to the parties could not be reached through their earlier efforts.
The dispute concerns allegations that natural gas migrated from neighbouring blocks operated by the state-owned Oil and Natural Gas Corporation (ONGC) into RIL's KG-D6 block. The Centre has alleged that RIL benefited from gas that originally belonged to ONGC's producing areas. RIL has rejected the allegation that it deliberately or improperly “siphoned” the gas.
The Supreme Court has appointed former judge Justice Ranjana Prakash Desai as the sole mediator in the long-running Krishna-Godavari (KG) Basin gas migration dispute between Reliance Industries Limited (RIL), its consortium partners and the Union government.
The Court has asked the mediator to take assistance from two domain experts, with each side suggesting an expert to help examine the technical and commercial aspects of the dispute.
Supreme Court Seeks Mediation After Settlement Talks Fail
A Special Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul Pancholi passed the order on Friday, October 30, 2026.
The Bench was informed by Attorney-General R. Venkataramani, representing the Centre, that discussions between the parties had failed to produce a mutually acceptable solution.
Senior advocate A.M. Singhvi, appearing for the Reliance-led consortium, agreed to the proposal to appoint a former Supreme Court judge as mediator. The Court noted that the dispute was complex and required someone experienced in handling commercial matters.
The parties have been asked to contact Justice Desai and arrange the mediation proceedings according to her convenience. They may submit written and oral presentations during the process. The Supreme Court has not fixed a deadline for completing mediation and has listed the matter for further consideration after four weeks to receive an update on progress.
What Is the KG Basin Gas Migration Dispute?
The dispute centres on allegations that natural gas migrated from neighbouring offshore blocks operated by the state-owned Oil and Natural Gas Corporation (ONGC) into the KG-D6 block operated by the Reliance-led consortium in the Krishna-Godavari Basin off the Andhra Pradesh coast.
ONGC raised the issue in 2013, alleging that gas from its adjoining reservoirs had moved into the consortium's block and was subsequently extracted and sold.
The Centre argued that the consortium had benefited from gas that did not originally belong to its producing block. It sought recovery of approximately $1.55 billion from RIL and its partners over the alleged extraction.
RIL has consistently rejected the allegation of siphoning gas. Its position is that the movement of natural gas between interconnected underground reservoirs is a natural geological process driven by differences in pressure, rather than an act of deliberate extraction from another operator's block.
The disagreement has involved technical assessments, contractual interpretations and arbitration proceedings over the rights and obligations of the parties under the production-sharing agreement.
How the Dispute Reached the Supreme Court
The dispute originated from a Production Sharing Contract signed in April 2000 between the Union government, Reliance and Niko for the development of the KG-DWN-98/3 block.
Following ONGC's allegations, the matter went through technical examination and arbitration. In July 2018, a majority of the arbitral tribunal ruled in favour of the RIL-led consortium, rejecting the government's principal claim. One arbitrator, however, expressed a dissenting view concerning the consortium's entitlement to profits from migrated gas without explicit government approval.
The Union government subsequently challenged the arbitral award before the Delhi High Court.
In May 2024, a single judge upheld the award. However, on February 14, 2025, a Division Bench of the Delhi High Court overturned that decision and set aside the arbitral award, citing grounds including patent illegality and concerns relating to public policy and the public trust doctrine.
The consortium challenged the High Court's decision before the Supreme Court. The appeals were filed by Reliance Industries, BP Exploration (Alpha) Limited and Niko (NECO) Limited.
Technical and Commercial Issues at the Centre of the Case
The dispute involves more than the movement of natural gas between neighbouring offshore reservoirs. It also raises questions about the interpretation of production-sharing contracts, ownership and use of natural resources, and the responsibilities of companies operating in India's energy sector.
The government's position is that the consortium should not benefit from extracting gas allegedly originating in ONGC's adjoining blocks without the required authorisation. Reliance, on the other hand, maintains that the movement of gas was a natural geological phenomenon and disputes the legal basis of the government's claim.
The involvement of two domain experts is expected to help the mediator assess the technical and commercial issues presented by both sides.
What Happens Next?
The mediation process will give the Centre and the Reliance-led consortium another opportunity to explore an out-of-court settlement. Both parties have indicated their willingness to cooperate with the mediator.
However, the appointment of a mediator does not mean that the dispute has been resolved or that either side has accepted the other's claims. The legal proceedings remain significant, and the Supreme Court will consider the progress made during mediation when the matter returns before it.
The outcome could have implications for the interpretation of production-sharing agreements, the management of natural resources and the resolution of complex commercial disputes in India's energy sector.
The immediate next step is for the parties to coordinate with Justice Ranjana Prakash Desai and begin the mediation process, with a progress update expected before the Supreme Court in four weeks.