India to study arbitration case award in Cairn Energy

23 dec 2020

India to study arbitration case award in Cairn Energy

On Wednesday the india government stated that it will studying the award in the arbitration case under India - UK agreement for promotion and protection of investment invoked by Caring energy Plc and Cairn UK Holdings Ltd.After such consultations, the government will consider all options and take a decision on further course of action, including legal remedies before appropriate fora," it said in a statementUK's Cairn Energy Plc has won an arbitration against the Indian government levying ₹10,247 crore in retrospective taxes, the company said on Wednesday.
This is also reported that Cairn Energy case is the second high profile retrospective tax litigation after Vodafone group. Cairn had challenged the Indian government seeking taxes over an internal business reorganisation using the 2012 retrospective tax law, under the UK-India Bilateral Investment TreatyThe tribunal ruled unanimously that India had breached its obligations to Cairn under the UK-India Bilateral Investment Treaty and has awarded to Cairn damages of $1.2 billion-plus interest and costs, which now becomes payable," it said.

This is the second blow to the government over the retrospective tax issue in three months. A separate international arbitration tribunal had in September ruled against India levying retrospective taxes on Vodafone Group