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.