SC upholds arbitral award, allows Vedanta-Videocon to recover $476 mn

The Supreme Court Wednesday allowed Vedanta and Videocon Industries to recover $476 million, instead of $198 million capped by the Petroleum Ministry, for their joint development of the Ravva oil and gas fields off the Andhra Pradesh coast between 2000 and 2007.

A Bench comprising Justice SA Nazeer, Indu Malhotra and Aniruddha Bose upheld the Delhi High Court’s February judgment that allowed Vedanta’s predecessor Cairn India to implement the foreign arbitration award of January 18, 2011 for the higher recovery. The tribunal had held that the companies were entitled to costs of $278 million, in excess of the $198 million. The counter claim of the ministry to the extent of $22 million was also allowed by the tribunal.