The Delhi High Court has delivered a significant ruling in Vedanta 's legal challenge over the CB-OS/2 offshore oil block, granting interim relief to the company on Wednesday, January 7. The court has stayed the Centre's direction requiring Vedanta to cease operations and hand over the block to Oil and Natural Gas Corporation (ONGC), while ordering both parties to maintain status quo until further orders.

Court's Key Rulings

The Delhi High Court's decision addresses multiple critical aspects of the ongoing dispute. A division bench rejected the Centre's objection questioning the maintainability of Vedanta's plea, holding that the company's arguments need proper consideration. The court has imposed a comprehensive status quo order, effectively freezing the block transfer and allowing Vedanta to continue operations.

Background of the Dispute

The legal battle stems from a complex timeline spanning over two decades. Vedanta was awarded the CB-OS/2 offshore block under a Production Sharing Contract (PSC) in 1998, with the original contract set to expire in 2023. The company applied for an extension in 2021 under government policy, and while the request remained pending, Vedanta received five interim extensions allowing continued petroleum operations.

Government's September Decision

In September 2025, the Ministry of Petroleum and Natural Gas rejected Vedanta's extension request and directed the company to stop operations, vacate the block, and hand over control to ONGC. Vedanta challenged this decision, claiming it was not given a proper hearing before rejection and arguing that the issues raised were never mentioned during the five previous interim extensions.

Market Response

Following the court's favorable ruling, Vedanta shares are trading at ₹622.50 apiece, reflecting a 0.15% increase from the day's opening on the NSE. The interim relief provides operational certainty for the company while legal proceedings continue.

Immediate Implications

The status quo order represents a significant temporary victory for Vedanta, as it prevents ONGC from taking operational control of the CB-OS/2 block and allows Vedanta to maintain its petroleum operations. This interim relief ensures continuity of operations while the substantive legal issues are resolved through proper judicial consideration.

Vedanta Limited has disclosed that its subsidiary Bharat Aluminium Company Limited (BALCO) received a customs penalty order from the Office of the Principal Commissioner of Customs, NSCBI Airport, Kolkata. The order confirms financial penalties totaling ₹17.00 lakh along with additional tax demands and interest charges.

Penalty Details and Nature of Violation

The customs authority imposed the penalty following an investigation into BALCO's import documentation practices. The violation specifically pertains to the levy of incorrect IGST rate in one of the Bills of Entry filed by the company during the import of goods.

Order Receipt and Timeline

BALCO received the customs order through hard copy delivery on January 05, 2026, at 4:00 PM. The order, numbered KOL/CUS/A&A/ADC/IMPORT/GR/01/2026, was originally dated January 01, 2026, by the Principal Commissioner of Customs office in Kolkata.

Financial Impact Assessment

Despite the penalty imposition, both Vedanta Limited and BALCO have assessed that the customs order will not result in any material financial impact on their operations. The companies have evaluated the monetary implications and determined that the penalty amount, while significant in absolute terms, does not constitute a material financial burden relative to their overall business operations.

Regulatory Compliance Disclosure

Vedanta Limited made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the requirements under Clause 20 of Para A of Part A of Schedule III of SEBI Listing Regulations, which mandates reporting of regulatory actions against listed entities and their subsidiaries.

The disclosure was signed by Prerna Halwasiya, Company Secretary and Compliance Officer of Vedanta Limited, ensuring proper corporate governance protocols were followed in communicating this development to the stock exchanges and investors.