New Delhi: Cairn Energy PLC said he was looking to resolve the long tax dispute with the Indian government after a recent amendment with a retrospective tax law.
“Nearby resolution expected from Indian tax disputes will result in a refund to Cairn by the Indian Government of Rs 7,900 Crore (around $ 1.06 billion).
In accepting the provisions of new laws in India, Cairn will be asked to attract claims, interests , and the cost of international arbitration and to terminate all law enforcement actions to be eligible for a refund, “the company said in the submission of the London Stock Exchange, offering to pay up to $ 700 million to its shareholders.
Crain Top executives have talked to the government for the past few weeks.
Cairn is probably the first between 17 cases that must be resolved and requires the government to return taxes collected from the British company.
“As soon as we get to the final resolution, the part of the resolution is that we drop everything in terms of litigation.
We can do it in a very short time, only a few days or something …
So, we are preparing based on this resolution quickly, all This case was dropped, and placed all this behind “CEO CEO Simon Thomson told the news agency on Tuesday.
The Director of the Company David Nesbit, who was in Delhi, said Cairn Energy would reduce his request for the damage to be paid, which was part of the award by the International Court.
“We clearly have to forget that.
We have to be pragmatic about it,” said Nesbit.
As part of the amendment transferred by Minister of Finance Nirmala Sitharaman, the government has made it pre-conditions for companies to drop all litigation and penalties and flower claims.
Nesbit also praised the government to become “very brave, transparent and open” about the process, which requires an amendment to reverse the decision during the Pranab Mukherjee position as Minister of Finance in the Manmohan Singh Government, who has tried to collect a tax increase in capital in all transactions with underlying assets In India, even if the company is not in India.
Mukherjee moved the amendment after a setback at the Supreme Court, who had rejected the claim made by the Tax Authority in Vodafone after the acquisition of 67% of the shares in Hutch Essar through the Foreign Entity with Hutchison Whampoa also took interest in an Indian entity of the local company.
Following amendments, Cairn and Vodafone challenged decisions with bilateral investment protection agreements and received favorable decisions in the international court.
The government has challenged the two decisions but under pressure after cases submitted in France and the US to enforce their claims based on the Tribunal Award.
Sitharaman said the amendment was in line with the government holder Narendra Modi, but was waiting to move then following the case “logical conclusion”.