On Wednesday, an important hearing took place in the Supreme Court in the KG Basin gas migration case, which has been one of the most significant business cases in India. In the hearing, Reliance Industries Limited (RIL) and its foreign partners stated that they were ready to go for mediation in the ongoing dispute with the Central Government. The hearing was conducted by a bench headed by the Chief Justice Surya Kant, along with Justices Joymalya Bagchi and Vipul M. Pancholi.

In the hearing, counsel for RIL and its foreign partners informed the court that the petitioners will write to the Government of India on Wednesday seeking mediation. The companies asked the court to stay the hearing until the outcome of the arbitration is known.

However, Attorney General R. Venkataramani, representing the central government, opposed this demand. He told the court that the hearing should continue for the time being and that the government would inform the court if there was any progress in the arbitration.

The Supreme Court bench refused to stay the hearing. The court stated that if the parties came to the court with a successful arbitration, the matter could be settled. The bench remarked that if a successful arbitration is reached, it would be very good; then we will settle the matter.

Indeed, the Supreme Court has been conducting final hearings in this case since May 19th. Reliance Industries, BP Exploration (Alpha) Limited, and Niko (Neko) Limited have challenged the Delhi High Court's decision, which overturned the international arbitration tribunal's award in their favor.

In its order dated February 14, 2025, the Delhi High Court overturned a single-judge bench decision that had previously upheld an arbitration award in favor of Reliance and its partner companies.

The dispute concerns gas migration in the Krishna-Godavari Basin. The central government alleged that Reliance and its partner companies extracted gas from reserves they did not have the right to exploit. The government demanded US$1.55 billion from the companies for this alleged loss.

However, in July 2018, an international arbitration tribunal rejected the Indian government's claim by a 2-1 majority. The tribunal ruled in favor of Reliance and its partner companies and ordered them to pay US$8.3 million in compensation.