<h1>Vedanta Oil and Gas Faces Litigation Over Block Extension Denial by Directorate General of Hydrocarbons</h1>
Vedanta Oil and Gas Limited, formerly known as Malco Energy Limited, is involved in a dispute with the Directorate General of Hydrocarbons (DGH), Government of India regarding four blocks previously awarded under OALP bidding rounds. The company has received demand letters from the DGH, which state that they will not grant further extension for these blocks and are seeking payment of liquidated damages along with applicable interest.
The conflict centers on the status of the allocated drilling rights. Vedanta Oil and Gas maintains that it possesses valid grounds in this matter and is actively pursuing all appropriate legal and other remedies available to it against the DGH.
A detailed look at the claim issued by the Directorate General of Hydrocarbons includes the following financial details:
| Particulars | Details |
|---|---|
| Opposing Party | Directorate General of Hydrocarbons (DGH), Government of India |
| Dispute Summary | Demand for liquidated damages and applicable interest due to non-granting of further extension on 4 awarded blocks. |
| Quantum of Claim | Approximately USD 35 million plus interest |
In addition to pursuing legal action, the company has formally requested the DGH to refer the matter to the Committee for External Eminent Experts (CEEE). This request aims to facilitate a resolution through conciliation or mediation between the parties.
Regarding the financial exposure resulting from this dispute, Vedanta Oil and Gas Limited stated that it will assess and account for any financial impact arising from the proceedings based on the outcome of the litigation and in accordance with applicable accounting standards.
VOGL Stock Price Movement
Vedanta Oil and Gas Limited slipped by 1.97% today, finishing in the post-market session at ₹34.83.The stock witnessed heavy trading as nearly 26 million shares were accounted for during the close.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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