According to the country's highest court, since the two companies were nationalised by Parliamentary decree, it can only be sold after Parliament agrees to their sale. This is not expected to be an easy process as the ruling party has a minority in Rajya Sabha upper house.

The court made the ruling based upon a petition brought before it by oil sector workers, the Oil Sector Officers' Association and a public interest petition, which have accused the two companies of profit sharing.

The government had planned to sell 34% of its 51% share in Hindustan Petroleum as part of its plans to raise US$3 billion through the asset sales of state-run companies. Between them, the two companies supply 40% of India's US$15 billion retail oil market.