Cairn Energy Plc stated on Sunday it had mentioned a number of proposals with Indian authorities officers in current days in an try and discover a “swift solution” to a protracted drawn-out tax dispute with India. In December, an arbitration physique awarded the British agency damages of $1.2 billion plus curiosity and prices, after ruling India had breached its obligations to Cairn below the U.Ok.-India Bilateral Investment Treaty.
This month, Cairn filed a case in a U.S. district court docket to implement the arbitration award, taking an preliminary step in its efforts towards recovering dues. The U.S. court docket this week issued digital summons to the Indian authorities to file its response to the lawsuit inside 60 days or face a judgment by default.
In a launch on Sunday, Cairn stated it had held “cordial and constructive discussions” with officers from the Indian finance ministry.
“We remain hopeful that an acceptable solution can be found, in order to avoid further prolonging and exacerbating this negative issue for all parties,” the corporate stated, including additionally it is able to take all needed steps to guard the pursuits of its shareholders.
The Indian authorities welcomes Cairn’s transfer to succeed in out for a decision however plans to file an attraction in opposition to the arbitration award and contest its sovereign proper to tax, stated a authorities official in New Delhi, who requested to not be recognized.
Cairn took the case to arbitration in 2015 to combat a requirement from Indian authorities in 2014 for Rs 102 billion ($1.4 billion) in taxes that India stated it was owed on capital positive factors associated to the 2007 itemizing of its native unit.
India misplaced one other main worldwide arbitration case final September in opposition to telecommunications large Vodafone over a $2 billion retrospective tax dispute.