Tribunal award in favour of Vedanta upheld by SC

NEW DELHI: The Supreme Court on Wednesday upheld a foreign arbitration award favouring Vedanta Ltd and Videocon Industries Ltd, allowing the two companies to recover $499 million spent in developing Ravva oil and gas fields off the coast of Andhra Pradesh.

The case had reached the SC after the petroleum ministry’s petition against enforcing the award on the grounds that it went against India’s public policy was rejected earlier by the Delhi High Court. The HC on 19 February decided not to interfere in the arbitral award from a Malaysian tribunal. The government has claimed that the contract entitled the companies to recover a maximum of $198 million.