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Explained: Why Cairn Energy is moving to seize Indian assets
Explained: Why Cairn Energy is moving to seize Indian assets
UK-based oil major Cairn Energy is taking swift steps to seize India s foreign assets. The company recently won a $1.4 billion arbitration award against India. Here is all you need to know.
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UPDATED: May 17, 2021 16:20 IST
The dispute dates back to 2015 when the Indian government sent a notice to Cairn Energy Plc regarding a retrospective tax demand. (Photo: Reuters)
The dispute dates back to 2015 when the Indian government sent a notice to Cairn Energy Plc regarding a retrospective tax demand. Five years later, on December 21, 2020, India was ordered to return up to $1.4 billion (with interest) to the UK company after an international arbitration overturned India s retrospective tax demand.
With the Indian government deciding to appeal against an international arbitration award that went against it, Cairn Energy Plc will directly knock at the doors of the Indian government for honouring of the award verdict. Cairn Energy CEO Simon Thomson would be meeting Union finance minister Nirmala Sitharaman in Delhi next week. The arbitration is now finalised and the award has been given and we would request along with others, that the Indian government moves swiftly to adhere to the award that has been given. That s important, it s important for our shareholders, who are global financial institutions and who want to see a positive investment climate in India, said Simon Thomson in a video address to all stakeholders.