India offers Cairn Energy $1billion refund
The lower house of parliament on Friday approved a draft law introduced the previous day, canceling a 2012 policy that enabled New Delhi to tax some foreign investments retrospectively.
UK’s Cairn Energy is targeting assets abroad of more state-run companies in a bid to recover dues from the government on the backdrop of the arbitration victory of the company over the Indian government.
According to people in the know, the British energy major may file lawsuits across several countries to make government firms and banks liable to pay the dues.
Cairn Energy already moved courts in the US, UK, Canada, France, Singapore, the Netherlands and three other countries to register the December 2020 arbitration tribunal ruling that overturned the Indian government’s Rs 10,247 crore demand in back taxes and ordered New Delhi to return $ 1.2 billion in value of shares it had sold, dividends seized and tax refunds withheld to recover the tax demand.
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After reports of identification of Indian assets overseas worth $70 billion by Cairn for potential seizure came out, government sources said that the Centre is well aware of its legal rights and will defend its case in courts if such proceedings materialise.
Official sources said that the government is confident of winning its appeal in The Hague.
Sources further pointed out that Cairn did not pay a single rupee tax anywhere in the world in respect of the impugned transactions. Cairn had also lost its appeal before the income-tax tribunal.
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