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Tag: Cairn Energy

  • Cairn withdraws all lawsuits in opposition to India, to get Rs 7,900 crore tax refund

    Britain’s Cairn Energy has dropped all lawsuits in opposition to the Indian authorities and its entities in courts from the US to France and to Singapore, to now be entitled for about Rs 7,900 crore refund of taxes that had been collected to implement a retrospective tax demand.
    As a part of the settlement reached with the federal government within the seven-year-old dispute over the levy of again taxes, the corporate – which is now often known as Capricorn Energy PLC – has withdrawn all circumstances that had been introduced to gather the tax refund ordered by a world arbitration tribunal after rescinding retrospective elevating of demand, in keeping with an commercial it issued in Indian newspapers on Wednesday.
    The authorities had initially refused to honour the December 2020 arbitration award however in August 2021 introduced a legislation to scrap all retrospective tax calls for and refund cash collected, after it confronted prospects of belongings – starting from flats utilized by its diplomatic workers in Paris and Air India planes within the US – being seized to get well the refund due.
    In the commercial – a requirement underneath the August 2021 legislation – the corporate mentioned “it has entered into the final stage in its undertaking with the Government of India by withdrawing Indian and global appellate and enforcement proceedings.” “This action is the final necessary step by the company under the rules of India’s Taxation (Amendment Act), 2021,” it mentioned.

    The firm on November 26, 2021, initiated proceedings to withdraw lawsuits it had filed in a number of jurisdictions to implement a world arbitration award which had overturned the levy of Rs 10,247 crore retrospective taxes and ordered India to refund the cash already collected.
    First the lawsuit introduced in Mauritius for recognition of the arbitration award was withdrawn, adopted by comparable measures in courts in Singapore, the UK, and Canada.
    On December 15, it sought and acquired ‘voluntary dismissal’ of a lawsuit it had introduced in a New York court docket to grab belongings of Air India to get well the cash due from the federal government. On the identical day, it made an identical transfer in a Washington court docket the place it was looking for recognition of the arbitration award.
    Recognition of arbitration award is step one earlier than any enforcement proceedings just like the seizure of belongings might be introduced.
    The vital lawsuit in a French court docket, which had connected Indian properties on the petition of Cairn, was withdrawn thereafter and the one within the Netherlands too was dropped.
    “The company will now file its Form 3 with the Income Tax Department, which will allow the Government to proceed to the final stage of issuing Form 4 of its undertakings,” the commercial mentioned.
    Form 3 is an utility that particulars the circumstances withdrawn. Issue of Form 4 would result in the refund of the taxes.
    While Form 3 is prone to be filed this week, the corporate would in all probability get the refund inside this month.
    “This will result in the Taxation Amendment Act nullifying the tax assessment originally levied against the company in January 2016 and the Government of India ordering the refund of the taxes collected from the company in respect of that assessment,” the commercial mentioned.
    It additional acknowledged that it’s issuing a discover to verify that the corporate shall eternally irrevocably forgo the suitable to make use of any arbitration or court docket order in opposition to the Indian authorities or its entities and no declare subsists.
    “The company has provided an undertaking which includes a complete release of the Republic of India and any Indian affiliates with respect to any award, judgment, or court order” and has offered an “indemnity against any claims,” it added.
    The attachment of Indian belongings, together with some flats in Paris, in July 2021 had triggered scrapping of a 2012 modification to the Income Tax Act that gave taxmen powers to return 50 years and slap capital good points levies wherever possession had modified palms abroad however enterprise belongings had been in India.
    The tax division had used the 2012 laws to levy Rs 10,247 crore in taxes on alleged capital good points Cairn made on reorganisation of its India enterprise previous to its itemizing in 2006-07.
    Cairn contested such demand saying all taxes due when the reorganisation, which was authorised by all statutory authorities, befell had been duly paid.
    But the tax division in 2014 connected and subsequently offered the residual shares that Cairn held within the Indian unit, which was in 2011 acquired by Vedanta group. It additionally withheld tax refunds and confiscated dividends as a consequence of it to settle a part of the tax demand. All this totalled to Rs 7,900 crore.
    Seeking to restore India’s broken popularity as an funding vacation spot, the federal government in August 2021 enacted new laws to drop Rs 1.1 lakh crore in excellent claims in opposition to multinationals akin to telecom group Vodafone, prescribed drugs firm Sanofi and brewer SABMiller, now owned by AB InBev, and Cairn.
    About Rs 8,100 crore collected from corporations underneath the scrapped tax provision are to be refunded if the corporations agreed to drop excellent litigation, together with claims for curiosity and penalties. Of this, Rs 7,900 crore is due solely to Cairn.
    Subsequent to this, the federal government in November 2021 notified guidelines that when adhered to will result in the federal government withdrawing tax calls for raised utilizing the 2012 retrospective tax legislation and any tax collected within the enforcement of such demand is paid again.
    For this, corporations are required to indemnify the Indian authorities in opposition to future claims and withdraw any pending authorized proceedings.

    An worldwide arbitration tribunal in December overturned the levy of Rs 10,247 crore in taxes on a 2006 reorganisation of Cairn’s India previous to its itemizing, and requested the Indian authorities to return the worth of shares seized and offered, dividend confiscated and tax refund withheld. This totalled USD 1.2 billion-plus curiosity and penalty.
    The authorities initially refused to honour the award, forcing Cairn to determine USD 70 billion of Indian belongings from the US to Singapore to implement the ruling, together with taking flag provider Air India Ltd to a US court docket in May.

  • Retro tax: Cairn petition to indemnify govt accepted

    In a step additional for decision of retrospective tax disputes, the federal government has accepted Cairn Energy Plc’s undertakings to indemnify the previous towards future claims and withdraw any pending litigation or continuing earlier than any discussion board in order to settle their retrospective tax circumstances, officers mentioned.
    Earlier this month, the corporate gave the required undertakings indemnifying the Centre towards future claims. The authorities has now accepted this and issued Cairn the procedural kind which commits to refund the tax collected, an official mentioned.
    Following the retrospective modification to the Income-tax Act moved by the then UPA authorities in 2012, tax calls for had been raised in 17 circumstances, out of which tax quantity of Rs 8,100 crore has been collected for 4 circumstances. Out of this Rs 8,100 crore quantity, Rs 7,800 crore is Cairn’s quantity. Vodafone is but to submit its endeavor, the official mentioned.
    The modification was in response to a Supreme Court verdict which had held that Vodafone can’t be taxed for a 2007 transaction that concerned its buy of a 67 per cent stake in Hutchison Whampoa for $11 billion. Later, in 2014, the UPA authorities once more used the identical part to boost tax demand towards Cairn Energy Plc for restructuring executed in 2006.
    This August, the NDA-led authorities introduced within the Taxation Laws (Amendment) Act, 2021, stating that no tax demand shall be raised for any oblique switch of Indian belongings if the transaction befell earlier than May 28, 2012.
    
    Cairn is now anticipated to start out withdrawing all circumstances in worldwide courts. After this, the corporate can be issued refunds and the withdrawal of circumstances might take as much as three-four weeks.
    The authorities final month notified guidelines that when adhered to will result in it withdrawing tax calls for raised utilizing the 2012 retrospective tax regulation and any tax collected within the enforcement of such demand being paid again. For this, firms had been required to indemnify the Centre towards future claims and withdraw any pending authorized proceedings.
    On November 3, Cairn mentioned it has entered into undertakings with the Centre as a way to take part within the scheme launched by the Taxation Laws (Amendment) Bill 2021, permitting the refund of taxes beforehand collected from Cairn in India.

  • Cairn Energy to vary identify to Capricorn Energy from mid-December

    Cairn Energy PLC will change its firm identify to Capricorn Energy PLC from mid-December. Cairn Energy, which gave the nation its largest onland oil discovery, had in 2011 bought the India unit, Cairn India to Anil Agarwal’s Vedanta Group.
    The sale included the switch of the Cairn model identify to Vedanta.
    As per a PTI report, Cairn Energy PLC mentioned in an announcement it “plans to change its company name from Cairn Energy PLC to Capricorn Energy PLC, effective from December 31, 2021”.
    Both the UK companies and Vedanta stored utilizing the identify, whereas Cairn Energy didn’t change its identify, the mining group continued with Cairn India Ltd until 2018 when the agency was merged with Vedanta.
    With PTI 
     
     

  • Cairn arbitration: Government confirms French court docket order towards Indian belongings

    The authorities on Tuesday confirmed {that a} French court docket has ordered the freezing of sure Indian belongings in Paris on a petition by Britain’s Cairn Energy, which is looking for to get better USD 1.72 billion from New Delhi after successful an arbitration towards retro tax.
    Minister of State for Finance Pankaj Chaudhary in a written reply to a query within the Rajya Sabha stated the federal government has filed an enchantment towards a global arbitration tribunal overturning levy of Rs 10,247 crore in again taxes on Cairn Energy.
    “Yes sir, an order has been passed by a French Court freezing certain Indian government properties in the case pertaining to Cairn Energy,” he stated.
    While the minister didn’t determine the properties, PTI had earlier this month reported that the 20-odd centrally positioned properties principally comprise flats, valued at greater than EUR 20 million.

    The French court docket, Tribunal Judiciaire de Paris, on June 11 agreed to Cairn’s utility to freeze (by way of judicial mortgages) residential actual property owned by the Government of India in central Paris. The authorized formalities for a similar have been accomplished earlier this month.
    A 3-member worldwide arbitration tribunal that consisted of 1 choose appointed by India, had in December final 12 months unanimously overturned the levy of taxes on Cairn retrospectively and ordered refund of shares bought, dividend confiscated and tax refunds withheld to get better such demand.
    “Arbitral tribunal (which had its seat in The Hague) pronounced its award on 21st December 2020 in favour of Cairn Energy Plc and Cairn UK Holdings Ltd (CUHL),” Chaudhary stated.
    The authorities has not accepted the award and has filed a ‘setting aside’ petition in a court docket within the Netherlands – the seat of the arbitration.
    “Appeal against the said award has been filed in the Hague Court of Appeal on March 22, 2021,” he stated.
    On motion initiated to guard the curiosity of the nation, he stated a global regulation agency, with related expertise, has been engaged for dealing with enforcement proceedings.
    “In consultation with its counsel team, the Government is taking all appropriate legal steps to protect its interest,” he stated with out giving particulars.
    With its shareholders – who embrace the biggies of the worldwide monetary world – egging it to get the cash again, Cairn has bought the arbitration award registered in international locations such because the US, the UK, Canada, Singapore, Mauritius, France and the Netherlands. It has since began looking for enforcement motion.
    It has recognized USD 70 billion of Indian belongings abroad for the potential seizure to gather the award, which now totals to USD 1.72 billion after together with curiosity and penalty.
    Last month, Cairn introduced a lawsuit within the US District Court for the Southern District of New York pleading that Air India is managed by the Indian authorities a lot that they’re ‘alter egos’ and the airline needs to be held accountable for the arbitration award.
    Similar lawsuits are more likely to be introduced in different international locations, primarily with high-value belongings.
    The Scottish agency invested within the oil and fuel sector in India in 1994 and a decade later it made an enormous oil discovery in Rajasthan. In 2006 it listed its Indian belongings on the BSE. Five years after that the federal government handed retroactive tax regulation and billed Cairn Rs 10,247 crore plus curiosity and penalty for the reorganisation tied to the flotation.

    The authorities then expropriated and liquidated Cairn’s remaining shares within the Indian entity, seized dividends and withheld tax refunds to get better part of the demand.
    Cairn challenged the transfer earlier than an arbitration tribunal in The Hague, which in December awarded it USD 1.2 billion (over Rs 8,800 crore) plus prices and curiosity, which totals USD 1.725 million (Rs 12,600 crore) as of December 2020.

  • Government has not acquired any discover: Finance Ministry on Cairn order

    Responding to studies that Cairn Energy has seized round 20 Indian government-owned properties in France, the Ministry of Finance on Thursday stated that it has not acquired any discover, order or communication, on this regard, from any French court docket.
    “Government is trying to ascertain the facts, and whenever such an order is received, appropriate legal remedies will be taken, in consultation with its Counsels, to protect the interests of India,” the finance ministry stated in an official assertion.
    It added that the federal government has already filed an software on March 22, 2021, to put aside the December 2020 worldwide arbitral award in The Hague Court of Appeal. “Government of India will vigorously defend its case in Set Aside proceedings at The Hague,” the assertion stated.
    “It is also stated that the CEO and the representatives of Cairns have approached the Government of India for discussions to resolve the matter,” it added.

    The finance ministry stated that constructive discussions have been held and the federal government stays open for an amicable answer to the dispute inside the nation’s authorized framework.
    Earlier within the day, information company PTI reported that Cairn Energy Plc secured a French court docket order to grab some 20 authorities properties in Paris to recuperate part of the $1.7 billion due from the Indian authorities following an arbitration panel overturning levy of retrospective taxes.
    The centrally positioned properties principally comprise of flats, valued at greater than EUR 20 million, had been utilized by Indian authorities institution in France, the report stated citing three individuals with direct data of the matter.
    The French court docket, Tribunal judiciaire de Paris, on June 11 agreed to Cairn’s software to freeze (by judicial mortgages) residential actual property owned by the Government of India in central Paris, the report stated including that the authorized formalities for a similar was accomplished on Wednesday night.
    –with PTI inputs

  • Cairn Energy secures French courtroom order to grab 20 Indian authorities properties

    Britain’s Cairn Energy Plc has secured a French courtroom order to grab about 20 Indian authorities properties in France to recuperate part of USD 1.7 billion arbitration award, sources mentioned on Thursday.
    On June 11, the French courtroom had ordered Cairn Energy’s take-over of Indian authorities properties, largely comprising flat; and the authorized course of received accomplished on Wednesday night.
    An arbitration panel had in December ordered the Indian authorities to return USD 1.2 billion plus curiosity and penalty to Cairn Energy after reversing a retrospective tax demand.
    With Indian govt not honouring the award, Cairn Energy has moved in a number of jurisdictions abroad to recuperate the quantity due by seizing Indian authorities property.

  • As lawsuits attempt to clip Air India wings, govt readies ‘not alter ego’ case

    Faced with lawsuits filed by Cairn Energy and traders of Devas Multimedia — each looking for to get better their dues from the Indian authorities by trying to grab Air India’s abroad belongings — the federal government has lined up a two-pronged strategy.
    First, the Centre has assembled a crew of legal professionals and authorized consultants to problem the premise that Air India is an “alter-ego” of the Government of India. Second, it’s getting ready an inventory of the airline’s abroad belongings that might face potential seizure from the lawsuits and will even pose a threat to the provider’s disinvestment course of, high authorities officers and Air India executives stated.
    Last week, traders of Devas Multimedia moved a US federal court docket looking for the takeover of Air India belongings to implement funds awarded in a $160 million arbitration compensation over a failed satellite tv for pc take care of the Indian Space Research Organisation (ISRO). This lawsuit is on the strains of Cairn Energy’s case, which is looking for seizure of Air India’s belongings to implement the $1.2 billion arbitration award granted to it by a Dutch court docket in a tax dispute in opposition to the Indian authorities.
    According to a senior Air India official, the Ministry of Civil Aviation is learnt to be “monitoring” each these circumstances from the disinvestment standpoint and is “coordinating” with the Ministry of Finance and Department of Space.
    “The precedence makes it tricky and therefore the attempt is to challenge the lawsuit on the grounds that the (Cairn) case is under appeal (at The Hague). If there is a favourable verdict (for Indian government) in the US court, that can be used as precedence to protect our assets in other countries as well,” the Air India official stated.
    The Indian authorities had challenged in a court docket in The Hague the arbitration tribunal verdict that overturned its demand for again taxes from Cairn. The Permanent Court of Arbitration (PCA) at The Hague in December 2020 had dominated that the Indian authorities’s retrospective tax demand on Cairn Energy was “in breach of the guarantee of fair and equitable treatment”, and in opposition to the India-UK bilateral treaty.
    The case is anticipated to be heard at The Hague on September 1.
    “In the case of Devas, an Indian court docket has accredited winding up of the corporate (Devas) primarily based on account of fraud. The case in opposition to GoI is in opposition to it, it’s a separate entity than an organization and needs to be handled like that. Air India shouldn’t be handled as an alter ego.
    Just having an workplace within the US makes it simpler to focus on. Will an organization be focused in different nations if the case is in opposition to the federal government?” a finance ministry official instructed The Indian Express.
    However, there may be priority of events trying to grab belongings of government-owned entities to strong-arm the State into paying their dues.
    In 2019, American agency ConocoPhillips had moved US courts to grab belongings of Venezuelan state-owned oil firm PDVSA to get better $2 billion it had received in arbitration in opposition to Venezuela’s 2007 takeover of its belongings. Thereafter, PDVSA paid its dues to the ConocoPhillips.
    Similarly, a cargo-agent at Amsterdam’s Schiphol Airport had seized a Jet Airways plane in 2019 over unpaid dues.
    Also, earlier this 12 months, a Malaysian court docket had allowed Dublin-based plane lessor AerCap to grab a Pakistan International Airlines-owned Boeing 777 airplane in Kuala Lumpur over unpaid dues.
    The Finance Ministry official, nevertheless, performed down any influence of the lawsuits on Air India’s disinvestment course of.
    “The Ministry of Civil Aviation and Ministry of Finance are monitoring the developments. Air India has hired legal defence to respond to the notice. It’ll be mounting its defence. They will fight it out and take the necessary legal steps. One should not speculate if it will delay the disinvestment process. At any given point, any company going for disinvestment will have some pending case, but because of that the divestment process does not get stalled … Disinvestment process will not stall, there is no need to be concerned on that front”.

    Currently, Air India flies wide-bodied planes from India to New York, Newark, San Francisco, Chicago and Washington DC within the US, and has gross sales places of work in a few of these places. It can be the one Indian airline to fly to those locations. The loss-making airline can be in superior phases of being disinvested by the federal government, with the Centre saying a number of entities had submitted expressions of curiosity. This included Mumbai-based conglomerate Tata group.

  • Cairn Energy case: Europe’s main participant in oil and fuel wins USD 1.4 billion arbitration award

    Image Source : PTI Cairn Energy case: Europe’s main participant in oil and fuel wins USD 1.4 billion arbitration award
    In a significant enhance to Cairn Energy, courts in 5 international locations, together with the US and the UK, have given recognition to an arbitration award that requested India to return $1.4 billion. According to specialists, this opens the avenue for Cairn to grab Indian belongings in these international locations if India doesn’t pay the award. Cairn Energy had moved the courts in 9 international locations to implement the award in opposition to India, which the corporate gained after a dispute over a retrospective capital features tax.
    The December 21 award from the Permanent Court of Arbitration within the Netherlands has been recognised and confirmed by the courts within the US, the UK, the Netherlands, Canada, and France and Cairn has began the method of registering the award in Singapore, Japan, the UAE and Cayman Islands.
    The registration of the award is step one in direction of its enforcement if the award shouldn’t be paid.
    Earlier in February, Cairn India had mentioned that it has mentioned plenty of proposals with the purpose of discovering a swift decision that could possibly be mutually acceptable to the Government of India and the pursuits of Cairn’s shareholders.
    An worldwide arbitration seated in The Hague and constituted underneath the phrases of the UK India Bilateral Investment Treaty has dominated conclusively on the matter and issued a remaining and binding award in Cairn’s favour, ordering the refund of the worth of the belongings taken, being $1.2 billion, plus important curiosity and prices.

    The arbitration additionally dominated decisively that this matter falls inside the jurisdiction of the UK-India Treaty, having heard the arguments from the events on the topic.
    Cairn has loved a protracted and profitable historical past of working in India, investing billions of {dollars}, bringing employment, and benefiting native communities.
    “The business we created in India has generated more than $20 billion in revenues for the government. The freezing of our assets in 2014 to enforce a retrospective tax measure has been extremely negative for all parties, and we are very keen to be able to put this legacy matter behind us and move forward positively,” Cairn India mentioned.
    “We have had cordial and constructive discussions in Delhi over the last few days with officials from the Ministry of Finance. Notwithstanding and without prejudice to our rights under the international arbitration award, we have discussed a number of proposals with the aim of finding a swift resolution that could be mutually acceptable to the Government of India and the interests of Cairn’s shareholders,” it added.
    “Assuming such a resolution can be achieved, we look forward to being able to move on to further opportunities to invest in India which continues to import the majority of the energy sources it consumes. We remain hopeful that an acceptable solution can be found, in order to avoid further prolonging and exacerbating this negative issue for all parties. However, we have also been clear that we must continue to take all necessary steps to protect the interests of our shareholders,” Cairn India mentioned.
    ALSO READ | Cairn stops paying royalty on Rajasthan oil after variations with ONGC
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  • Govt to contest Cairn award, fits in worldwide courts

    The authorities is learnt to have determined to file an attraction towards the $1.2-billion arbitration award within the retrospective tax demand case involving Cairn Energy. Following Cairn Energy chief government officer Simon Thomson’s assembly with Finance Secretary Ajay Bhushan Pandey for the second consecutive day on Friday, authorities sources indicated that the Centre may even contemplate contesting different fits filed by the corporate at varied worldwide courts.
    Company sources, in the meantime, indicated that the problem of attraction was not mentioned within the assembly.
    “The government will file an appeal against Cairn arbitration award soon and will contest its sovereign rights to tax. It will also strongly contest other suits filed by Cairn Energy at various other international courts,” an official mentioned.
    The authorities has welcomed Cairn’s transfer to succeed in out for a decision. However, it’s of the view that any dispute decision to be sought by Cairn should be “within the already existing laws”, the official mentioned.
    After Friday’s assembly, Thomson mentioned it was a “constructive” interplay. The firm is hoping for a constructive decision, a supply near the entity mentioned. “It was a very constructive discussion and there was no discussion on whether the government would appeal in the Cairn retrospective tax demand case. However, it was a constructive discussion and we are looking forward to a solution,” the supply mentioned.
    Queries despatched by The Indian Express to the Finance Ministry on the problem went unanswered.
    Thomson had earlier met Pandey on Thursday to debate the best way ahead with respect to the arbitration award by the Permanent Court of Arbitration (PCA) at The Hague in December 2020. The court docket had dominated that the federal government’s retrospective tax demand on Cairn Energy was “in breach of the guarantee of fair and equitable treatment”, and towards the India-UK bilateral treaty.
    He had earlier sought a gathering with Finance Minister Nirmala Sitharaman however the interplay was not formalised.
    The authorities had 90 days — till March — to problem the December award in the next court docket in Singapore. The authorities had earlier hinted that the one potential resolution for each events to keep away from additional litigation was for Cairn Energy to comply with the federal government’s Vivad se Vishwas tax amnesty and dispute decision mechanism.
    The dispute stems from the a lot debated retrospective taxation concern. In 2006-2007, Cairn UK had, as a part of an inner rearrangement, transferred shares of Cairn India Holdings to Cairn India. Income-tax authorities then determined that since Cairn UK had made capital features, it should pay capital features tax as much as Rs 24,500 crore.
    The firm interpreted Indian legal guidelines on capital features otherwise and refused to pay. Several rounds of litigation on the Income-Tax Appellate Tribunal (ITAT) and the High Court adopted. Cairn misplaced the case at ITAT; a case on the valuation of capital features is pending earlier than Delhi High Court.
    While Cairn Energy offered nearly all of its India enterprise, Cairn India, to mining large Vedanta in 2011, income-tax authorities barred it from promoting about 10 per cent, citing pending taxation points. The cost of dividend by Cairn India to Cairn Energy was additionally frozen.
    In its judgment, the PCA at The Hague mentioned the problem was not simply associated to tax, however was an investment-related dispute – and was subsequently below the jurisdiction of the worldwide arbitration court docket.
    The arbitration tribunal added India should not make any extra makes an attempt to get well “the alleged tax liability or any interest and or penalties arising from this alleged liability through any other means”.

  • Cairn CEO to fulfill FinSecy immediately to debate manner forward

    Cairn Energy’s chief government officer Simon Thomson will meet Finance Secretary Ajay Bhushan Pandey on Thursday to debate the long run course for a $1.2 billion arbitration award, which it received towards the Indian authorities’s retrospective tax demand. This comes after Cairn moved courtroom within the US for the implementation of the arbitration award.
    “Cairn’s CEO has sought a meeting with the Finance Minister. Now he will be having a meeting with the Finance Secretary and other senior officials of the ministry,” an official stated.
    In December, Cairn Energy received a significant aid as Permanent Court of Arbitration at The Hague had dominated that the Indian authorities’s retrospective tax demand towards the worldwide oil and gasoline main was “inconsistent” with the UK-India bilateral treaty. The worldwide tribunal had dominated that India’s retrospective tax demand was “in breach of the guarantee of fair and equitable treatment”.
    In a petition, Cairn Energy Plc and its UK holding firm have approached the US district courtroom for the District of Columbia to recognise and ensure the December 21 award by a three-member tribunal on the Permanent Court of Arbitration at The Hague. Last month, the agency had written to the federal government, saying it might be compelled to grab authorities property if the latter didn’t pay the tax quantity. The judgment has requested the federal government to pay $1.2 billion (roughly Rs 8,800 crore) to Cairn Energy Plc.

    Cairn Energy, in 2011, offered Cairn India to Vedanta Group, barring a stake of 9.8 per cent. It needed to promote residual stake as effectively however was barred by the I-T division. The authorities froze the fee of dividends by Cairn India to Cairn Energy. The principal tax demand for Cairn is round Rs 10,247 crore, in addition to a penalty at 100 per cent on the principal tax.