India had seized and sold shares of Cairn in its erstwhile India unit, confiscated dividend due and withheld tax refunds to recover the tax demand it had levied two years after passing a law in 2012 that gave it powers to levy tax retrospectively
The assets identified range from Air India s planes to vessels belonging to the Shipping Corporation of India, and properties owned by state-owned banks to oil and gas cargoes of PSUs
The move ratchets up pressure on India s government to pay the sum of $1.2 billion plus interest and costs that the British firm Cairn was awarded by an arbitration tribunal in December. The body ruled India breached an investment treaty with Britain and said New Delhi was liable to pay.
India to contest $1.4 billion Cairn arbitration award and fight for right to tax
India to contest $1.4 billion Cairn arbitration award and fight for right to tax
It’s official now. India will file an appeal against the Cairn arbitration award that has asked India to return $1.4 billion to Cairn Energy Plc. Top government sources have said that the process of filing an appeal against the international arbitration panel has begun.
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UPDATED: March 11, 2021 09:27 IST
Courts in five countries have given recognition to an arbitration award that has asked India to return $1.4 billion to Cairn Energy Plc. (Reuters)
It’s official now. India will file an appeal against the Cairn arbitration award that has asked India to return $1.4 billion to Cairn Energy Plc. Top government sources have said that the process of filing an appeal against the international arbitration panel has begun.
Cairn arbitration award | Nirmala says it s her duty to appeal
Updated:
Updated:
March 06, 2021 08:11 IST
Last year, the government lost two high-profile arbitrations over the levy of taxes on British firms, using legislation that gave it the power to levy taxes with retrospective effect
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Union Finance Minister Nirmala Sitharaman. File
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PTI
Last year, the government lost two high-profile arbitrations over the levy of taxes on British firms, using legislation that gave it the power to levy taxes with retrospective effect Finance Minister Nirmala Sitharaman on Friday indicated the government’s intent to appeal against an arbitration panel asking India to return $1.4 billion to UK’s Cairn Energy Plc, saying it is her “duty” to appeal in cases where the nation’s sovereign authority to tax is questioned.