Nayara Energy, one of India’s key oil and gas companies, has moved to the Delhi High Court against tech giant Microsoft. The company alleges that Microsoft has blocked its access to essential digital tools and data without any legal requirement under Indian or US laws. This unexpected move has triggered serious concerns about corporate overreach and global legal overreach into local jurisdictions.
Microsoft Blocks Access to Critical Tools and Data
Nayara Energy claims Microsoft suddenly blocked its access to important services, including its own data and proprietary tools. These services were fully paid for, and Nayara says the licenses are active. Despite this, Microsoft locked them out without any prior warning or discussion.
This digital disruption has forced Nayara to seek help from the Delhi High Court. The company wants the court to issue an urgent order to resume services. According to Nayara, these systems are vital for daily operations, especially for maintaining uninterrupted supply across its nationwide fuel network.
In today’s digital world, companies like Nayara depend heavily on cloud platforms, analytics tools, and secure data access to run their operations. From managing refinery systems to tracking fuel supply across India, digital services play a key role every day.
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The company says it took this legal step to protect its rights and avoid a possible breakdown in digital operations, which are essential for serving millions of consumers.
EU Sanctions and Microsoft’s Unilateral Move
The issue started after the European Union announced its 18th round of sanctions against Russia. These sanctions aim to block Russia’s income from oil and gas. Since Rosneft, a Russian company, holds a 49.13% stake in Nayara Energy, Microsoft may have taken steps to comply with these new EU rules.
The 18th sanctions package from the EU is one of the most comprehensive yet. It targets companies and transactions that may be helping Russia earn profits from oil, gas, and refined products. These sanctions also focus on closing gaps and preventing companies in other countries from unknowingly helping Russia bypass restrictions.
However, Nayara argues that these sanctions apply only within Europe. It says there is no legal reason for a US-based company like Microsoft to enforce EU rules on an Indian company. Nayara insists it operates fully under Indian law and has broken no rules.
What makes matters worse, the company says, is that the decision was taken unilaterally. That means Microsoft acted alone—without consultation, notice, or legal backing in India. Nayara believes this could set a dangerous example if global companies start enforcing foreign laws in countries where they do not apply.
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Impact on India’s Energy Sector
Nayara Energy plays a major role in India’s fuel and energy space. It operates around 8% of the country’s refining capacity and nearly 7% of its fuel retail network. It also contributes to India’s plastic and chemical industry, handling a large share of the country’s polypropylene production.
The company reassured Indian consumers that despite the digital challenges, its fuel supply and services will remain uninterrupted. It added that it will continue working with Indian authorities to ensure full transparency and compliance.
Nayara also pointed out its strong commitment to the Indian economy. Since 2017, it has invested over ₹14,000 crore in the country. It has plans to invest ₹70,000 crore more in the coming years. These investments are focused on clean energy, ethanol production, refinery upgrades, and infrastructure expansion.
Still, the current dispute highlights major risks. Sudden blocks by global service providers could have deep effects on key sectors like energy. Nayara says its legal action is not just about restoring services—it’s about stopping foreign legal frameworks from interfering in Indian business operations.
