Judge Richard J Leon of the US District Court for the District of Colombia has given Cairn time till September 10 to file a response to the government's 'Motion to Dismiss' petition
British oil firm Cairn Energy Plc on Tuesday said it has identified Indian sovereign assets overseas, which it can seize in the event of New Delhi failing to return over USD 1.7 billion that an international arbitration tribunal has ordered after rescinding a retrospective tax demand. Cairn is extremely confident that satisfaction of the award will be achieved either by negotiated settlement or by enforcement against Indian assets, the firm said in its 2020 annual earnings statement. The firm has moved courts in nine countries to get the arbitral award registered and recognised. The tribunal ruled unanimously that India had breached its obligations to Cairn under the UK-India Bilateral Investment Treaty and awarded to Cairn damages of USD 1.2 billion-plus interest and costs, which immediately became payable. The total due at the year-end was USD 1.7 billion, it said.
Centre to challenge all Cairn cases in international courts
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Cairn had initiated an international arbitration after Indian government in 2014 used a two-year old law to raise a Rs10,247 crore demand on a decade old internal reorganisation of the company’s unit in the country.
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India has decided to appeal a $1.2 billion international arbitration award won by Cairn Energy Plc in a tax dispute and to strongly contest all cases filed by Cairn in various international courts, a person informed about the development said.
The move signals the government’s resolve to defend its sovereign rights in taxation. The government has, however, kept open the possibility of a resolution within existing Indian laws, the person said.
Synopsis We had a constructive dialogue and the dialogue is ongoing, ThomsonCairn Energy Plc Chief Executive Simon Thomson told reporters after meeting Finance Secretary Ajay Bhushan Pandey, CBDT Chairman P C Mody and other tax officials. He refused to comment on what transpired at the meeting. I can t comment more on the meeting.
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New Delhi: Nearly two months after it won an international arbitration tribunal ruling against the Indian government levying taxes retrospectively, Britain s Cairn Energy Plc Chief Executive Simon Thomson on Thursday met top finance ministry officials in hope of quickly resolving the issue. We had a constructive dialogue and the dialogue is ongoing, Thomson told reporters after meeting Finance Secretary Ajay Bhushan Pandey, CBDT Chairman P C Mody and other tax officials.