In a strongly worded response, Reliance Industries criticized the DGH's decision to obtain 86% of the KG-D6 block area. This includes eight gas discoveries reportedly valued at USD10 billion. The said decision was called 'arbitrary' and blamed the oil regulator as the cause for the delays in the development of the oil finds.

The letter was signed by Reliance Executive Director PMS Prasad dated last August 24 addressed to Oil Secretary Vivek Rae. The letter inquired as to the intentions of the Directorate General of Hydrocarbons in requiring Reliance to surrender 6,601 sq.kms out of the total 7,645 sq km area in the block. The reason for the required return was Reliance's failure to develop the oil fields had already 'expired'.

The decisions that were questioned included the refusal to recognize the investment plans for five discoveries in the area, containing 0.8 trillion cubic feet of reserves. The DGH said that the investment was not up to par with the current pricing of USD4.2 per million British thermal units. The second decison was the refusal to recognize that the other three discoveries as there were no prescribed tests confirming the discoveries and the later refusal to grant permission to conduct the said required confirmatory tests.

According to Prasad, Reliance-BP had formally agreed to perform the DGH required drill stem test but the regulatory authorities never approved their requests and instead sent them a letter insisting that the consortium relinquish all eight discoveries in the area.