Asian Energy takes ONGC to court over ban
Oilmax-controlled Asian Energy Services is challenging an ONGC two-year ban in court.
Last month (September 2024), Asian filed a writ petition against ONGC in the Bombay High Court. On September 26 (2024), justices BP Colabawalla and Firdosh Pooniwalla heard Asian's senior counsel Ravi Kadam.
Further hearings are expected this month (October 2024). On September 20 (2024), Asian Energy informed the BSE and the NSE about the development.
"This is to inform you that the company (Asian Energy) has received an order from ONGC putting the company on holiday for two years from September 20 (2024)," reads the announcement. "During this period, the company shall not participate in any tender with ONGC; this has no bearing on ongoing contracts."
On its website, ONGC confirms that Asian is banned for two years from September 20 (2024) to September 19 (2026)." Asian's announcement reveals that the ONGC order relates to two seismic data acquisition contracts awarded in 2017 and 2018.
"Both these orders were successfully completed by the company," says Asian. "The payment and completion certificates were received in due course; the action taken by ONGC is after a long period on certain technical grounds; the company, as advised by its legal counsel, is taking appropriate steps to protect its interest."
A source familiar with the matter reveals that the ONGC order blacklisting Asian came after an alleged "integrity pact violation" under the National Seismic Programme (NSP) tender. "Asian was supposed to do all the work," he claims.
"But Asian gave a sub-contract to (Mumbai-based seismic contractor) GEO-API Solutions." However, he claims that Asian told ONGC it had not given any sub-contract to GEO-API.
Yet, he alleges that GEO-API submitted documentary evidence about the sub-contract to ONGC. Calls to Asian Energy managing director Kapil Garg were not returned as he was busy in meetings.
Emails sent to the company went unanswered.