Oil India Limited ( oil india ) disclosed significant developments in two major tax litigations pending before the Hon'ble Supreme Court of India. The most material outcome is the resolution of a land tax dispute with the State of Assam, which had demanded approximately ₹2484.81 crores for the years 2005-2024. Conversely, a separate legal challenge concerning the applicability of Goods and Services Tax (GST) on royalty payments remains active, with new interim directives issued by the apex court.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The update follows previous filings, including an initial disclosure dated August 14, 2023, and subsequent quarterly Integrated Filings (Governance), the latest of which was filed on July 27, 2026, for the quarter ended June 30, 2026.

Resolution of Assam Land Tax Dispute

The dispute with the State of Assam originated from the Assam Taxation (on Specified Lands) (Amendment) Act, 2004. This amendment required oil producers to pay ₹200 per metric tonne for Crude Oil and ₹100 per thousand cubic meters for Natural Gas based on annual productivity. Oil India challenged this demand as ultra vires the Constitution of India. The matter was initiated in the Supreme Court on June 6, 2020 (T.C.(C) No. 232/2020).

As per the order dated July 29, 2026, the State of Assam informed the court of its intent to withdraw the specific land tax imposed on mineral oil. The state indicated it would move an appropriate bill in the State Legislature to formalize this withdrawal. Consequently, the Hon'ble Supreme Court disposed of Transferred Case (C) No. 232 of 2020, along with Writ Appeal No. 599/2005 pending before the Gauhati High Court. All pending interlocutory applications were also disposed of.

Status of GST on Royalty Litigation

The second major litigation concerns the levy of GST on royalty payments made under the Oil Fields (Regulation & Development) Act, 1948. Oil India contends that GST is not payable on such royalties, contrary to FAQs on Government Services issued by the CBIC. The company initially filed a writ petition in the Hon'ble Gauhati High Court, which granted an interim stay on GST payments in Assam on November 2, 2021.

Cases from the Gauhati and Rajasthan High Courts were transferred to the Supreme Court and admitted on February 3, 2024 (T.P.(C) No. 000300 - 000304/2024). In the order dated July 29, 2026, counsel for Oil India stated that the company would deposit GST as per law within six weeks. This deposit is subject to the final outcome of the proceedings. The petitions have been tagged with C.A. No. 10560/2025 (Udaipur Chamber of Commerce and Industry vs. Union of India).

What the Numbers Show

The resolution of the Assam land tax dispute removes a potential liability of approximately ₹2484.81 crores from Oil India’s balance sheet risks, provided the legislative withdrawal proceeds as stated. However, the interim direction to deposit GST on royalty payments within six weeks introduces a short-term cash outflow requirement, the magnitude of which depends on the company’s royalty payments during the relevant period. The final financial impact of the GST litigation will depend on the Supreme Court’s ultimate ruling on the constitutional validity of the levy under the Oil Fields Act.

Oil India and the Municipal Corporation of Delhi (MCD) have signed a Memorandum of Understanding (MoU) to establish Compressed Bio-Gas (CBG) plants in Delhi, marking a strategic expansion into renewable energy infrastructure. The agreement, executed on July 30, 2026, aims to convert segregated organic municipal solid waste into green fuel, addressing urban sanitation challenges while supporting the Government of India's energy transition goals. This partnership positions Oil India to diversify its portfolio beyond traditional hydrocarbons by leveraging waste-to-energy technology in one of India's most densely populated regions.

The MoU was signed in the presence of Rekha Gupta, Chief Minister of Delhi, and Pravesh Wahi, Mayor of Delhi, alongside senior officials from both organizations. The collaboration establishes a framework for cooperation focused on sustainable municipal solid waste management. By utilizing organic waste generated within Delhi, the project seeks to reduce landfill dependency, lower greenhouse gas emissions, and improve urban hygiene. The initiative aligns with national programs including the Swachh Bharat Mission, Sustainable Alternative Towards Affordable Transportation (SATAT), and Net Zero commitments.

Project Specifications

The initial phase of the partnership involves the planning of two distinct CBG plants. These facilities will utilize segregated organic municipal solid waste as feedstock. The planned capacities and expected outputs are detailed below:

The plants are designed to produce between 30 and 32 tonnes per day (TPD) of Compressed Biogas collectively. This output represents a tangible step toward commercializing bio-fuel production from urban waste streams.

Strategic Implications

This agreement signals a shift in Oil India's operational focus toward circular economy models. By integrating waste management with energy production, the company addresses two critical urban issues: waste disposal and clean energy supply. The use of municipal solid waste as a feedstock reduces reliance on imported energy sources and provides a scalable model for other metropolitan areas. For shareholders, this diversification into renewable infrastructure mitigates long-term risks associated with fossil fuel volatility and regulatory pressures on carbon emissions.

The project also reinforces Oil India's status as a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. By executing such partnerships, the company demonstrates its capability to manage complex, multi-stakeholder projects involving local government bodies. The successful implementation of these plants could serve as a blueprint for future collaborations across other Indian cities, potentially unlocking significant revenue streams from carbon credits and fuel sales.

Regulatory Compliance

The press release was issued pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, ensuring transparency for investors. The document was signed by Ajaya Kumar Sahoo, Company Secretary & Compliance Officer, on July 30, 2026. This disclosure confirms that the MoU is a material event requiring immediate market communication, highlighting the significance of the partnership in Oil India's corporate strategy.