Mumbai: India has been ordered to return $1.2 billion to Cairn Energy Plc after administration lost arbitration proceedings in a tax dispute.
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, people with knowledge of the matter said, asking not to be identified citing rules on speaking to the media. India had seized dividend, tax refund and sale of shares due to the Scottish oil explorer to partly recover the dues. India can appeal.
A spokeswoman for the tax department did not answer a call made to mobile phone during business hours.
Retrospective tax: After Vodafone, India loses Cairn arbitration case
The international tribunal also ruled that India’s demand of $1.2 billion in retrospective tax was “in breach of the guarantee of fair and equitable treatment”. December 24, 2020 3:50:01 am
The Cairn India Ltd. logo is displayed on a sign outside the venue of the company s annual general meeting in Mumbai, India, on Thursday, Aug. 18, 2011. (Photographer: Adeel Halim/Bloomberg)
Cairn Energy Plc won a major relief on Wednesday as the Permanent Court of Arbitration at The Hague ruled that the Indian government’s retrospective tax demand against the global oil and gas major was “inconsistent” with the UK-India bilateral treaty.
Cairn Energy wins arbitration in tax spat with Indian government
Cairn Energy wins arbitration in tax spat with Indian government
Cairn Energy’s victory will be a second loss for India in an international arbitration after Vodafone Group Plc won a years-long tax dispute with the Indian government in September over a controversial $3 billion tax demand. Updated: December 23, 2020 12:14:18 pm
The Cairn India Ltd. logo is displayed on a sign outside the venue of the company s annual general meeting in Mumbai, India, on Thursday, Aug. 18, 2011. (Photographer: Adeel Halim/Bloomberg)
Cairn Energy Plc won an
arbitration over tax dispute with Indian government, serving a double-blow to Prime Minister Narendra Modi’s government after a similar loss against Vodafone Group Plc.
Cairn wins $1 2 billion award in damages in tax row with Centre hindustantimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from hindustantimes.com Daily Mail and Mail on Sunday newspapers.