Mining group Vedanta Resources’ $9.6 billion acquisition of Cairn India is not listed for consideration by the Union Cabinet this week amid talk that Cairn may be asked resubmit applications seeking government approval for the deal without attaching any conditions.

Cairn India had on November 23 last year, more than three months after its parent firm Cairn Energy announced the sale of its majority stake in the company to Vedanta, made conditional applications, which have come in for questioning following a Delhi High Court ruling.

“As of now, it is not listed on the agenda of the Cabinet meeting slated for tomorrow,” an Oil Ministry source said.

The Delhi High Court had last week upheld the state’s sovereignty on the grant of consent in case of “any material change in the status of the companies or their shareholding”.

It used this ground to allow the government to terminate Canoro Resources’ contract for the Amguri oilfield in Assam.

The Canadian firm had sold shares to Barbados-based MASS Financial Corp without seeking prior government nod.

Sources said Cairn, after repeated reminders, had on November 23 applied for the sale of a 51 per cent stake to Vedanta, but with a rider that government consent was not mandatory and that the corporate deal involving a share transfer does not trigger partner state-owned ONGC’s pre-emption rights.

This is contrary to the Delhi High Court ruling that held the government’s right to approve transactions resulting in a change in the status of companies, they said, adding that after the deal, Vedanta will have a 60 per cent stake in Cairn India, a material change in a firm that controls the nation’s largest oilfield.

The oil ministry had opposed the conditional application, which is mentioned in the note for Cabinet seeking approval for the $9.6 billion deal.

This was also cited in the draft note it sent to the Prime Minister’s Office for inclusion in his reply to UK Prime Minister Mr David Cameron’s letter alleging delays in approval of the deal.

“The question before us is if we can apply different standards to Canoro and Cairn,” the source said. “So far, no decision has been taken.”

Cairn’s application stated, “No consent is required or contractually called for,” and it was seeking the nod as a responsible citizen which fully respects sovereignty.

The Delhi High Court in its ruling said: “An interpretation, either of a law or a contract, which impinges on the sovereign power of the state to safeguard its vital and strategic interests (and not just commercial interests), would be eschewed by the Court to save the law, or the contract, from being void on the ground of it being opposed to public policy.”