Recently, Cairn Energy threatened India to seize foreign assets worth $ 1.4 billion in an old tax case.
In its judgment, the International Arbitration Tribunal has asked the Indian government to pay $ 1.4 billion to compensate Cairn for the loss.
Order to repay India $ 1.4 billion
In its judgment, the International Arbitration Tribunal has asked the Indian government to pay $ 1.4 billion to compensate Cairn for the loss. The tribunal had unanimously ruled in December that India had imposed a tax of Rs 10,247 crore in 2014 in violation of its obligations under the UK-India Bilateral Investment Treaty.
CEO met Cairn with Finance SecretaryCairn CEO Simon Thomson held discussions between February 18 and February 20 with over half-a-dozen other senior officials, including Finance Secretary Ajay Bhushan Pandey and CBDT chairman, to seize assets overseas to secure damages to the company. Like don’t have to take extreme steps.
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The company said that discussions in Delhi with Finance Ministry officials were cordial and constructive. “Despite the international arbitration decision being in our favor, we discussed several proposals without prejudice, which may be mutually acceptable to the interests of the Government of India and the shareholders of Cairn,” the company said in a statement.
Government can appeal against the decision of the tribunal
Sources familiar with the case said that the government was planning to appeal against the tribunal’s decision and believed that the arbitration tribunal could not question the taxation rights of a nation.
Cairn threatened India
The Edinburgh-based company wrote to the Indian government last month that if the government fails to pay $ 1.4 billion after losing the lawsuit imposed on the earlier date, the company is forced to seize the assets of the Indian government. Can.
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Cairn will continue to take steps to protect the interests of share holders
In a recent statement, Cairn said, “We hope that an acceptable solution can be reached, so that all parties can avoid further prolonging this negative issue.” However, we have also made it clear that we will take all necessary steps to protect the interests of our shareholders.
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