The Government of India will return about Rs 7,900 crore to Cairn. Cairn Energy has accepted this proposal and is withdrawing the lawsuits filed in different countries.
Cairn Energy is withdrawing the lawsuits filed in different countries.
Britain’s Cairn Energy Plc has withdrawn lawsuits against the Indian government and its entities in the US and elsewhere in the retro tax case. The company is in the final stages of withdrawing lawsuits in Paris and the Netherlands. These lawsuits were made against retro tax i.e. retrospective tax.
The company, settling a seven-year-old dispute with the government over the imposition of retro tax, has initiated proceedings to withdraw cases filed in several courts internationally. The Government of India will return about Rs 7,900 crore to Cairn. Earlier, an international arbitration court had reversed the retrospective tax ruling and ordered India to refund the tax collected.
Cases were withdrawn from Mauritius in November
Two sources with knowledge of the matter said that on November 26, Cairn withdrew the trial in Mauritius and the cases were withdrawn in the courts of Singapore, UK and Canada. Cairn on December 15 withdrew a suit in a New York court to confiscate Air India assets to recover dues from the Indian government. On the same day a similar step was taken in a court in Washington.
Good news will come from France in two days
Sources said that one such important case is in the final stages of withdrawal in a French court, in which orders for attachment of Indian properties were issued on Cairn’s plea. The paperwork in this regard is expected to be completed in the next two days.
Action in the last stage in the Netherlands too
Sources said that the paperwork to withdraw a case in the Netherlands is also in the final stages. Cairn Energy Plc said last month that it had accepted the Indian government’s offer to settle the dispute arising out of retrospective taxation, following which it was agreed to withdraw the lawsuit.