Cairn energy UK's Cairn Energy drops litigation against GoI, Air India in US
Washington D.C/IBNS: Cairn Energy renamed Capricorn Energy has entered into a scheme with the Indian government seeking a refund in taxes and to conclude the multi-billion dollar dispute between both parties.
The British oil and gas major withdrew their arbitration enforcement cases against the Government of India (GoI).
Capricorn filed for a “notice of voluntary dismissal” on their petitions against India in the District of Columbia District Wednesday, as per court filings.
The London-listed company has also filed for a dismissal of its petition against Air India in New York Southern District Court, according to PaceMonitor, a federal court cases tracking website.
The reason behind the sudden change in stance is India’s move to scrap the retrospective tax law.
On Nov 3, the company said it would start filling required paperwork to expedite the refund process.
Earlier this month, Cairn filed undertakings to indemnify the Government of any possibility of future claims and removal of all legal actions undertaken against India.
Cairn awaits Rs 7,900 crore in tax refunds, Economic Times reported (ET).
The Indian Government had earlier seized the company’s shares, dividends, including tax refunds to meet its tax demand.
The 2014 dispute had begun with the Government seeking capital gains tax worth Rs 10,200 crore, excluding penalty and interest for reorganizing Capricorn’s assets within India in 2006.
The company had sold a controlling stake in its Indian division to Vedanta in 2011 before getting its shares listed in 2007, reported ET.
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