Nayar Energy, supported by the Russian energy company Rosneft, has accused the American tech company Microsoft of unilaterally suspending digital services. Nayara Energy claims that Microsoft has blocked access to their cloud, data, and digital products without any prior notice, despite these services being acquired under fully paid licenses.
The company asserts that the decision is based on recent European Union sanctions, but there is no obligation under U.S. or Indian law that requires Microsoft to take this step.
Petition Filed in Delhi High Court
Nayar Energy has approached the Delhi High Court against this action. The company's petition states that Microsoft's action is not only affecting their functionality but could also impact India's digital and energy infrastructure.
Nayar has requested the court to grant them renewed access to the necessary digital infrastructure and direct Microsoft to immediately restore services. Additionally, the company has sought interim relief to prevent operational disruptions until the services are restored.
Action Under the Guise of European Union Sanctions
The European Union issued a new sanctions package against Russia in July, targeting Rosneft-supported companies. Since Rosneft holds a 49.13 percent stake in Nayara Energy, the European Union included it in its list.
Although these sanctions do not directly affect India because they are EU policy, Microsoft shut down Nayara's services citing these very sanctions.
Nayara Raises the Issue of Corporate Overreach
Nayara Energy has described this entire action as 'corporate overreach'. The company argues that if tech companies like Microsoft can suspend services at any time in this manner, it could set a dangerous precedent.
The company stated that this decision could cause serious disruptions in India's energy ecosystem because sectors like refining, logistics, and supply chains are entirely dependent on digital infrastructure in today's time.
Nayara Energy Operates a Large Operation in India
Nayara Energy is one of the largest private sector refining companies in India. Headquartered in Mumbai, the company operates a plant in Vadinar, Gujarat, with an annual refining capacity of 20 million tonnes.
In addition, the company runs more than 6750 petrol pumps across the country and supplies fuel to millions of customers daily. In such a scenario, the role of digital infrastructure is considered crucial in its daily operations.
Decision Taken Without Notice, Deemed Inappropriate
Nayara Energy alleged that Microsoft made this decision without any prior notice, which suddenly disrupted operations. The company states that they were not given any clear information regarding which rule this action was taken under.
The statement said that this is against the basic spirit of any corporate partnership and could negatively impact other companies in the future.
America's Silence and India's Position
There has been no official comment from the American administration regarding this entire development. The Indian government has also not made any public statement on the matter so far, but experts believe that this matter may soon reach diplomatic levels.
Given the important role of companies like Nayara in India's energy sector, such digital actions are also linked to the country's strategic interests.
Now Eyes on Court Hearing
The petition filed by Nayara Energy is scheduled to be heard in the Delhi High Court in the coming days. The company wants the court to take a quick decision so that its day-to-day operations are not further affected.
