New Delhi, July 11 -- In a setback for the Union government, the Delhi High Court on Friday dismissed the Centre's plea to restrain Vedanta Ltd from deducting payments from its revenue share in certain Rajasthan oil and gas fields.

Justice Jasmeet Singh, in his interim order as part of an arbitration dispute, rejected the government's request to stop Vedanta from implementing a 2023 arbitral award. So far, Vedanta has adjusted $377 million (about Rs.3,235 crore) from provisional revenue estimates for the second, third and fourth quarters of 2023-24 and is yet to adjust another $157 million ( Rs.1,347 crore).

The court ruled that Vedanta is entitled to continue these deductions as permitted by the arbitration award, also allowing the min...