The government has given a big shock to Reliance chairman Mukesh Ambani. The Government has fined a sum of 10,312 crores. This is a big blow to Reliance from the government but why did government fined Reliance with huge amount????
From past few years an issue is going on between ONGC – Reliance at KG-D6 block regarding oil extraction. We all know that Reliance and ONGC has oil wells at Krishna basin, the problem is that the ONGC and Reliance wells rest side by side at this basin. The ONGC states that the Reliance oil extraction workers had extracted oil from ONGC wells without any information or permission.
The Directorate general of hydrocarbons of the Indian Ministry has investigated on this issue. It stated that the value of oil extracted from the ONGC wells is 1 Billion dollars… i.e.,6652.75 crores. The ministry has submitted its report on this issue to the government as a detailed final report.
Later the government has ordered Reliance Company should compensate for the illegal oil extraction from ONGC wells. The total amount fined by the government is 1.55 billion Dollars…. an estimated 10,312 crores.