After Cairn Energy, Mitsui s British arm challenges India s Rs 2,400 cr retro tax demand
Earlyguard had commenced the arbitral procedure in February this year and Mitsui & Co. has divulged the details in its financial results, announced earlier this month
BusinessToday.In | May 19, 2021 | Updated 14:32 IST
Earlyguard, a British subsidiary of Japanese behemoth Mitsui & Co. Ltd. has initiated arbitration proceedings under the India-UK Bilateral Investment Treaty
The Centre is facing another international challenge to its policy of retrospective tax amendments. Earlyguard, a British subsidiary of Japanese behemoth Mitsui & Co. Ltd. has initiated arbitration proceedings under the India-UK Bilateral Investment Treaty after income tax authorities raised a demand of Rs 2,400 crore regarding a transaction that took place in 2007.
Cairn mulls ways to monetise arbitration award
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Last Updated: Mar 10, 2021, 05:41 PM IST
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Synopsis
An arbitration tribunal ruled in favour of Cairn Energy in a six-year-old retrospective tax dispute in December and ordered the Indian government to pay the UK firm damages of $1.2 billion plus interest and cost, which at the end of 2020 amounted to $1.7 billion. The Indian government is preparing to appeal the award.
Agencies
Cairn said the tribunal ruled that the dispute was within the scope of the Treaty and other relevant legal parameters.
Cairn Energy is pursuing the option to monetise the arbitration award it won against India by potentially transferring the award to third-party fund or pledging Indian assets, the company said in an earnings statement that showed India s liability at $1.7 billion.