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Mumbai16 hours ago
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- Interest and penalty have been demanded by Cairn Energy since 2014
- Cairn won the case against the government in December in the Orbitation Court
The British company Cairn Energy has filed a case against the Indian government in a US district court. This case has been filed for tax of $ 1.2 billion (about 9 thousand crore rupees).
Case filed on 12 February
Cairn filed the case on 12 February. In this, he has demanded interest and others since 2014. Cairn, however, denied that its CEO had sought an appointment with the Finance Minister of India. Recently it was reported that the CEO of Cairn is asking for time to meet the Finance Minister.
The case was won in December
Let us know that in December, Cairn Energy won in Singapore’s Orbitration Court against the government in the case of retrospective tax. Retrospective refers to the old tax case. In this case of tax dispute, the Court of Arbitration (Arbitration Court) ordered the Government of India to pay interest and penalty in addition to $ 1.2 billion. This amounted to more than $ 1.4 billion. The Government of India has not paid this amount to Cairn Energy.
Trade agreement violation
According to the tribunal’s decision, India has violated the trade agreement with Britain. The court said that Cairn’s Indian tax claim of Rs 10,247 crore on internal reorganisation of business in India in 2006-07 is not correct. The tribunal had ordered a government-held tax refund to refund the money it had sold, forfeiting the dividend and recovering tax demand.
Intention to pressure payment
Cairn Energy has taken this step with the intention of pressuring the Government of India for payment. The company wrote a letter to the government last month saying that if its money is not received soon, it will be forced to seize the assets of the Indian government abroad. Cairn Energy has also started assessing which assets it can seize. The company plans to seize Air India’s plane and ship.
Assessing Indian assets
There are reports that Cairn is also evaluating some Indian properties in Canada. However, its CEO says that he still wants to work fast with the Indian government. Let me tell you that the Government of India had to face defeat in a similar case of Vodafone for $ 2 billion. However, recently the government has challenged against this decision. In this case, the government can also take steps in the case of Cairn Energy.