Nayara Energy Takes SAP Services to Court After Suspended Service Due to Sanctions

NEW DELHI — September 27, 2025 — Nayara Energy has turned to the Delhi High Court, demanding that SAP India immediately restore suspended software services that are preventing it from raising invoices under the new GST 2.0 regime.

The company insists that because its contract is with the Indian arm of SAP, it should not be caught in the crosswinds of EU sanctions affecting SAP’s European parent.

The court on Tuesday declined to grant urgent interim relief, with Justice Amit Bansal stating he must first review SAP’s written response. The judge added, “At this stage, I am of the view that a reply be placed on record before the court considers the grant of interim relief.”

Nayara’s legal team argued that without access to the SAP software—essential for invoicing—the company cannot comply with India’s tax laws. With GST 2.0 taking effect on September 22, Nayara claimed it is inhibited from issuing any invoices because “changes need to be made to the software which can only be done with SAP’s help,” adding urgency to its appeal.

The company also underscored its economic importance, noting that it contributes roughly 8.5 % of India’s petroleum revenue.

SAP India countered that it cannot unilaterally restore services without its German parent’s involvement, citing compliance obligations under EU export controls.

According to Nikesh Jain, Co-Founder & CEO, Edurigo Technologies, this situation highlights a bigger concern — Indian businesses relying on foreign-owned software are left vulnerable when geopolitical sanctions come into play.

Today it’s a company; tomorrow it could be an entire sector or even the whole country. We must choose our technology partners with these risks in mind," Jain posted on social media.

The next hearing in the suit is scheduled for October 29, when the court is expected to weigh both parties’ submissions and decide on granting interim relief.