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Diversion of gas by RIL: Ministry explains why compensation goes to government and not ONGC
Feb 09: The petroleum ministry has substantiated in writing the views of the Shah Committee to reiterate the view that ONGC has no locus standi to bring a tortious claim against RIL for trespass or conversion of crude oil in its block KG-DWN-98/2 since it does not have any ownership rights or possessory interest in the natural gas.
8The ministry quoted the Shah Committee's reliance on the Article 27 of the PSC, which says, “the Government is the sole owner of the petroleum underlying the contract area and shall
 remain the sole owner of petroleum produced under the PSC”, and also the judicial support in the judgment of the Supreme Court in RNRL v RIL, (2010) 7 SCC 1. T
8The committee held that ONGC, till the time it produces gas from its block, has no legal or possessory right in the gas under its surface and contract area. The gas continues to belong to the Government of India.
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