Shale gas has been recently developed and poses as an attractive tool both politically and economically. In the U.S., the prices of oil and gas have dropped substantially. That, in turn, has reduced the cost of production of steel, fertilizers, plastic, and petrochemicals. It has allayed the fears of exhaustion of traditional oil and natural gas in the foreseeable future. However, shale gas and oil extraction have faced severe criticism from environmental groups. Environmental risks posed by fracking (the process of extracting shale gas and oil), especially groundwater contamination, have been recognized in the environmental impact assessments conducted in the European Union and the U.K. Because of such concerns, France and Luxembourg and many sub-national governments have declared a moratorium on fracking. Following the footsteps of the U.S. and in the hope of reaping similar benefits, the Indian Government, in 2013, released its shale gas and oil policy. This policy gives to the National Oil Companies the right to explore for and exploit shale deposits. The authors discuss potential socio-political and environmental impacts of fracking in India and the various legal hurdles that it might encounter in international fora and Indian courts. With respect to the former, India is bound by the procedural and substantive obligations under the precautionary principle and the duty not to cause transboundary harm to the aquifers. Under Indian law, there might be a challenge under the fundamental right to water of the local people, environmental law principles like the public trust doctrine and the precautionary principle, and the ground-water laws of the states. The authors conclude by recommending that the Indian Government must either declare a moratorium on fracking or at least develop strong provisions mandating public disclosure of the amount of water and types of chemicals used by the companies. The disclosure requirements would act as a check on the companies engaging in fracking.