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India asked Cairn to pay $ 1.2 billion after arbitration loss

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crairn

Cairn Energy has won a world arbitration case against the Indian government over a tax dispute, ending one among the country’s highest-profile disputes, two sources with direct knowledge of the matter told press agency Reuters. Cairn took the case to arbitration in 2015 to fight against a requirement in 2014 from the Indian tax department for ₹ 10,200 crore ($1.4 billion) in taxes it said were owed on capital gains associated with the 2007 listing of its Indian unit.
In 2011, Cairn Energy sold its majority stake in Cairn India to Vedanta, reducing its stake within the Indian company to about 10 per cent.

The government seized the remaining shares in 2014 after the tax complaint was made, also as dividends Vedanta owed to Cairn Energy for its holdings within the Indian firm.

In 2018, Cairn Energy said it might write down the worth of its investment in Vedanta after tax authorities sold $216 million worth of its shares within the Indian company .

The government didn’t immediately answer an invitation for comment. Cairn Energy couldn’t be reached.

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