India Asked To Pay $1.2 Billion To Cairn After Arbitration Loss An international arbitration tribunal ruled that the tax claim was not a valid demand and asked the government to repay the funds withheld along with interest to Cairn.
Updated: December 23, 2020 3:05 pm IST
Cairn Energy surged as much as 45% in early London trading, its biggest intraday gain in almost 17 years.
India has been ordered to return over $1.2 billion to Cairn Energy Plc after Prime Minister Narendra Modi s administration lost arbitration proceedings in a tax dispute, its second defeat over levies.
An international arbitration tribunal ruled that the tax claim was not a valid demand and asked the government to repay the funds withheld along with interest to Cairn. India had seized dividend, tax refund and shares to partly recover the dues. The judges unanimously ruled that India s retrospective tax demand breached the U.K.-India bilateral investment protection treaty, Cairn said in a statement Wednesd