OIL & GAS

Engaged with Indian government on adherence of tax arbitration award, says Cairn Energy

Scottish company Cairn Energy on Wednesday said that it is in talk with Indian government for adherence of award in its favour by International Tax Arbitration Tribunal.

According to the company, the tribunal ruled unanimously that India had breached its obligations under the treaty and awarded to Cairn damages of $1.2 billion plus interest and costs (sums up to $1.6 billion), which are now payable.

“A significant milestone was achieved in December 2020 with a unanimous award in favour of Cairn in its arbitration with the Government of India under the UK-India Bilateral Trade Investment Treaty. We have engaged with the Government of India regarding adherence to the tribunal’s ruling and are taking all necessary steps to protect our rights to the award,” the company said in pre-close update ahead of announcement of its result.

There is strong possibility of Union Government challenging this award. On December 23, Finance Ministry had that it will be studying the award and all its aspects carefully in consultation with its counsels.

Source
the hindu businessline
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