UK Court Dismisses India’s Appeal in Rakia Investment Dispute
Ruling upholds jurisdiction over Andhra Pradesh bauxite project claims
Vijayawada: The English Court of Appeal has dismissed India’s appeal challenging an arbitration tribunal’s jurisdiction over a dispute brought by Ras Al Khaimah Investment Authority (RAKIA) concerning an aluminium industry project in Andhra Pradesh.
In its October 22, 2026, judgment, the court upheld the English High Court’s ruling that the tribunal had jurisdiction to hear RAKIA’s claims under the 2013 India-UAE Bilateral Investment Treaty (BIT).
The dispute arose from a 2007 memorandum of understanding between the governments of Ras Al Khaimah and Andhra Pradesh for setting up an alumina refinery and aluminium smelter through ANRAK Aluminium Ltd, in which RAKIA and its partners invested.
Under a bauxite supply agreement signed on October 30, 2008, the state-owned mineral development corporation (APMDC) agreed to supply bauxite to ANRAK.
After the refinery was built, the AP government issued GO 44 on April 6, 2016, cancelling earlier orders authorising the agreement. APMDC terminated the supply agreement in November 2016. RAKIA alleged that the actions breached India’s obligations under the treaty.
RAKIA initiated arbitration under the UNCITRAL Rules in December 2016. The tribunal dismissed its claims on jurisdictional grounds in May 2022. However, on June 20, 2025, Justice Knowles of the English High Court overturned that decision, holding that the tribunal had jurisdiction. India subsequently appealed.
The appeal, heard in May 2026, questioned the identification of RAKIA’s investment and whether GO 44 had been applied directly to it under the treaty.
Rejecting India’s arguments, the appellate court upheld the finding that RAKIA’s shareholding represented an investment, not merely an asset. It ruled that the government’s actions directly affected the investment by ending bauxite availability and terminating the supply contract essential to the project.
