Cairn News

The company in a statement said it has received "net proceeds of USD 1.06 billion". Cairn had in 2006-07 reorganised its India business, which comprised operations of prolific Rajasthan oilfields, prior to its listing on stock exchanges. The British firm contested the demand, saying all taxes due were duly paid.

The government now has to accept this and issue Cairn a so-called Form-II. The form will commit it to refund the tax collected to enforce the retrospective tax demand. Following the issue of Form-II, Cairn will withdraw legal proceedings and will get a refund of Rs 7,900 crore.

Judge Richard J Leon of the US District Court for the District of Colombia has given Cairn time till September 10 to file a response to the government's 'Motion to Dismiss' petition. Thereafter, the Indian government can file a reply in support of its motion by October 1. This can be countered by Cairn by October 20 and a further two months have been granted to the Indian government to file its reply.

India could also drop $13.5 billion in outstanding claims against multinationals. Vodafone, Sanofi and SABMiller, now owned by AB InBev, can also expect rewards. Centre hopes the resolution of the dispute can bolster its reputation among foreign companies.

"It is also proposed to refund the amount paid in these cases without any interest thereon," the bill said. This bill impacts retro tax cases of at least two big companies -- Cairn Energy Plc and Vodafone Group of UK. Both firms had won international arbitrations against the levy of retrospective taxes on them.

CEO and the representatives of Cairn have approached the Government of India for discussions to resolve the matter. The company is targeting assets abroad of more state-run companies. Cairn has reportedly secured a French court order to seize about 20 Indian government properties in France.

Cairn on May 14 filed a lawsuit in the US District Court for the Southern District of New York seeking declaration of Air India as the 'alter ego of Indian government' by virtue of control and as a state-owned company it "legally indistinct from the state itself", three sources with direct knowledge of the development said.

The move ratchets up pressure on India`s government to pay the sum of $1.2 billion plus interest. Cairn filed the lawsuit on Friday in the U.S. District Court for the Southern District of New York. Air India is the only Indian carrier that flies long-haul flights to destinations such as the United States and Canada.

Cairn in its half-yearly report announcement Tuesday reported a loss of USD 500.5 million as a result of the de-recognition and loss of financial assets in India.

The panel, comprising three judges of international repute, has also turned down India’s application for bifurcation of the issue of whether tax is covered under India-UK bilateral investment protection treaty.

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Senior tax department officials said Cairn Energy has sought 10 more days to reply to the show cause seeking levy of penalty.

The merger of cash-rich oil producer Cairn India into its debt-ridden parent Vedanta Ltd is now complete, the two firms announced on Tuesday.

Within weeks of tax tribunal ITAT upholding levy of retrospective tax, the Income Tax Department has slapped a fresh demand note of Rs 10,247 crore on British explorer Cairn Energy Plc.

Vedanta Ltd on Tuesday said it has received all approvals for its merger with Cairn India barring the RBI nod for issuing redeemable preference shares to the non-resident shareholders of the oil producer.

Cairn writes to Modi seeking resolution to Rs 29,047 crore retrospective tax demand ahead of UK PM's visit

Delhi High Court on Tuesday dismissed a plea filed by UK-based Vedanta group company, Cairn India Ltd, seeking permission to export excess crude from its Barmer oil field in Rajasthan.

Mining mogul Anil Agarwal on Thursday said the merger of his group's cash-rich oil subsidiary Cairn India with parent firm Vedanta is likely to be completed by the end of this fiscal.

Mining mogul Anil Agarwal on Monday said the merger of his group's cash-rich oil firm Cairn India with its parent, Vedanta Ltd is likely to be completed by year end to create India's largest diversified natural resources company.