The Supreme Court has referred the long-pending Krishna-Godavari Basin gas migration dispute between Reliance Industries and the Union government to mediation, appointing former SC Judge Justice Ranjana Prakash Desai as mediator.
SC Refers Reliance KG Basin Dispute to Mediation
The Supreme Court on Friday referred the high-profile Krishna-Godavari (KG) Basin gas migration dispute between Reliance Industries Limited (RIL) and the Union of India to mediation. The bench, headed by Chief Justice of India Surya Kant, appointed former Supreme Court Justice Ranjana Prakash Desai as the sole mediator, stating, "Let Justice Ranjana Prakash Desai be the mediator. She handles complex commercial disputes well. Let an expert from each side also assist her."
The dispute centers on gas flow deviations in the KG-D6 block, with RIL alleging unwarranted regulatory intervention and financial loss, while the government contends that production practices have led to reservoir damage. The matter has been sub judice for years, involving technical, contractual, and regulatory complexities under the Production Sharing Contract (PSC) framework.
This referral marks a significant step toward alternative dispute resolution (ADR) in high-value inter-state and public-sector commercial conflicts. The use of judicial mediation by the Supreme Court reflects a growing trend of decongesting the docket and resolving technically nuanced disputes through expert-led processes. Success in this mediation could set a precedent for resolving energy-sector disputes without prolonged litigation.
