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Mumbai3 hours ago
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- Cairn Energy is seeking $ 1.2 billion in tax
- Government has challenged the case of similar Vodafone
US court has sent summons to the Government of India. This summons has been sent in the case of payment of Cairn Energy. Cairn had filed a case in the US court. This case is about $ 1.2 billion from the Indian government. Cairn Energy won a case against the government in December in Singapore’s Orbitation Court.
The case was registered on 12 February
Let us know that Cairn Energy plc and Cairn UK Holding filed a petition in Washington DC District Court on 12 February. On 16 February, the Columbia District Court issued a summons electronically to the Government of India. This is just before Cairn CEO Simon Thomson is scheduled to meet Finance Secretary Ajay Bhushan Pandey today. Thomson will also meet Finance Minister Nirmala Sitharaman this week. He has been trying to meet the Finance Minister for a long time.
The government has not given any indication yet
However, the government has not yet indicated whether it will pay Cairn Energy or challenge the December decision. Cairn Energy is constantly trying to put pressure on the government. If the government refuses to pay, then Cairn Energy can demand from the court that it be allowed to take the assets of the Indian government abroad.
Cairn Energy is assessing Air India’s assets
Cairn Energy is already assessing Air India’s assets. She is doing this work in many countries including Canada, USA. According to sources, a lot depends on Thomson’s meeting today. However, the tension between Cairn and the government does not seem to resolve the issue. It is believed that the Finance Ministry can also challenge in this matter. The government has appealed in a similar tax case of Vodafone.
Cairn won the case 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.
Accused of violation of trade agreement
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.