British explorer Cairn Energy Plc has won an arbitration case against the Indian government, seeking ₹10,247 crore in retrospective taxes, sources said Wednesday.
This is the second blow to the government in three months.
An international arbitration tribunal had in September ruled against India levying retrospective taxes on the Vodafone Group.
In the Cairn Energy case, an international arbitration tribunal ruled that the tax claim was not a valid demand and asked the government to repay the funds withheld, along with interest, to Cairn.
India had seized dividend, tax refund, and shares to partly recover the dues.
The judges unanimously ruled that India’s retrospective tax demand breached the U.K.-India bilateral investment protection treaty, Cairn said in a statement on Wednesday.
Meanwhile, Bloomberg reported that Cairn Energy surged as much as 45% in early London trading, its biggest intraday gain in almost 17 years.
Courtesy – The Hindu