Cairn versus India: What lies ahead
3 years, 5 months ago

Cairn versus India: What lies ahead

Live Mint  

Cairn Energy Plc has secured a French court order to freeze Indian assets in France after India challenged an award of over $1.2 billion to Cairn. Cairn began international arbitration in 2015 and won $1.2 billion in damages plus interest and costs last year, totalling more than $1.7 billion. In May 2018, ConocoPhillips got court orders to seize Venezuela’s state oil company PDVSA’s assets on a $2 billion plus interest arbitration award, forcing PDVSA to withdraw its vessels from Caribbean waters. In 2020 December, a British Virgin Islands’ court ordered attachment of holding companies of Roosevelt Hotel in Manhattan and Scribe Hotel in Paris, owned by Pakistan International Airways, on an award of $4 billion plus interest to the Tethyan Copper of Australia.

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History of this topic

India refunds Rs 7,900 cr to Cairn to settle retro tax dispute
2 years, 10 months ago

India refunds Rs 7,900 cr to Cairn to settle retro tax dispute

The Hindu  

The Indian government has paid Cairn Energy Plc ₹ 7,900 crore to refund taxes it had collected to enforce a retrospective tax demand, ending a seven-year-old dispute that had tarred the country’s image as an investment destination. Cairn dragged the government to international arbitration over the levy and enforcement proceedings and on December 22, 2020, got a favourable ruling that …

Taxing drama: The Hindu Editorial on retroactive tax disputes
2 years, 10 months ago

Taxing drama: The Hindu Editorial on retroactive tax disputes

The Hindu  

In what should be the last act of a long and winding tax dispute drama, British firm Cairn Energy has said it has concluded all steps prescribed by the Indian government in order to be eligible for the refund of a contentious retroactive tax levy. The original target for this move, that has sharply dented India’s credibility, was Vodafone, which …

Cairn ‘fulfils’ retro tax repeal steps, awaits ₹7,900 crore refund
2 years, 10 months ago

Cairn ‘fulfils’ retro tax repeal steps, awaits ₹7,900 crore refund

The Hindu  

U.K.’s Cairn Energy on Tuesday said it has complied with all rules of the retro tax repeal law to now become eligible for about ₹7,900 crore refund of taxes that were collected from it to enforce a retrospective tax demand. As part of the settlement reached with the government in the seven-year-old dispute over the levy of back taxes, the …

India’s poor compliance with investment awards
2 years, 11 months ago

India’s poor compliance with investment awards

Hindustan Times  

The roller-coaster ride of the interminable Devas saga continues. Yet, India continued to brazen it out — launching an investigation against Devas, leading to an order to liquidate the company by the National Company Law Tribunal, and refusing to comply with the BIT awards. The disputes that India lost include cases brought by leading global corporations such as Vodafone, Deutsche …

Retro Tax: Cairn drops lawsuits in U.S., U.K.; completing formalities in Paris, Netherlands
2 years, 11 months ago

Retro Tax: Cairn drops lawsuits in U.S., U.K.; completing formalities in Paris, Netherlands

The Hindu  

Britain's Cairn Energy Plc has dropped lawsuits against the Indian government and its entities in the U.S. and other places and is in the final stages of withdrawing cases in Paris and the Netherlands to get back about ₹7,900 crore that were collected from it to enforce a retrospective tax demand. As part of the settlement reached with the government …

New York court pauses tax suit to allow Cairn to settle dispute with India
3 years, 2 months ago

New York court pauses tax suit to allow Cairn to settle dispute with India

Firstpost  

This follows Cairn Energy and Air India jointly asking the court to stay further proceedings in view of the fresh government enacting a fresh law to scrap retrospective taxation in the country A New York court has paused Cairn Energy’s pursuit of US assets of Air India for the recovery of USD 1.2 billion arbitral award, so as to allow …

Cairn Energy plans £500m shareholder bonanza from Indian government tax dispute
3 years, 3 months ago

Cairn Energy plans £500m shareholder bonanza from Indian government tax dispute

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy London-listed oil and gas firm …

Arbitration Troubles For India
3 years, 5 months ago

Arbitration Troubles For India

Live Law  

India recently faced another blow in the realm of arbitration as a Paris based court ruled in favour of Britain's Cairn Energy Plc. The said order was passed as a result of India's recalcitrance to honour the Permanent Court of Arbitration's award in Cairn Energy v the Republic of India. But, the Ministry of Finance circumvented the Supreme Court decision …

Cairn tax dispute brings shortcomings in India's economic policy to the fore
3 years, 5 months ago

Cairn tax dispute brings shortcomings in India's economic policy to the fore

Firstpost  

Revenue maximization can never be the goal of economic policy. India’s dispute with Cairn Energy is the direct consequence of the disastrous retrospective tax amendment law, introduced by the Congress-led United Progressive Alliance government, and accepted by the Narendra Modi regime. The British oil major got a notice from India’s Income Tax department in January 2014, asking for Rs 10,247 …

'Haven't Received Any Notice': Finance Ministry On Cairn Energy Seizing 20 Indian Govt Properties In France
3 years, 5 months ago

'Haven't Received Any Notice': Finance Ministry On Cairn Energy Seizing 20 Indian Govt Properties In France

ABP News  

New Delhi: Indian government on Thursday issued a statement regarding an ongoing tussle involving Britain's Cairn Energy after it was reported that the firm has secured a court order to seize several Indian government properties in Paris to recover a part of the USD 1.7 billion dues. About 20 government properties in Paris, which were reportedly seized/frozen by Cairn Energy …

Cairn Energy freezes 20 Indian govt assets in Paris after court order: Report
3 years, 5 months ago

Cairn Energy freezes 20 Indian govt assets in Paris after court order: Report

India Today  

Britain’s Cairn Energy Plc has effectively seized 20 Indian government properties in Paris after securing an order from a French court. The report said that the French court had ordered Cairn Energy’s takeover of Indian government properties, mostly comprising flats, on June 11. Explained | Why Cairn Energy is moving to seize Indian assets This is the first asset freeze …

Cairn Energy dispute | Vigorously defending case against arbitration order, says govt.
3 years, 7 months ago

Cairn Energy dispute | Vigorously defending case against arbitration order, says govt.

The Hindu  

The government is “vigorously defending” its case against an international arbitration order asking it to refund $1.2 billion to Cairn Energy over a retrospective tax dispute, the Finance Ministry said on Sunday, asserting that India had never “agreed to arbitrate” a national tax dispute. “The government has raised several arguments that warrant setting aside of the award including but not …

Why Cairn Energy's move to attach Air India's assets in $1.2 billion tax case has the Centre in a fix
3 years, 7 months ago

Why Cairn Energy's move to attach Air India's assets in $1.2 billion tax case has the Centre in a fix

India Today  

The recent move by UK’s Cairn Energy Plc--threatening to seize the assets of national carrier Air India to enforce a $1.2 billion arbitration award the former had won against the Indian government last year--has proved to be extremely embarrassing for the Centre. Cairn Energy has moved the US district court for the Southern District of New York, seeking to make …

Cairn identifies $70 billion Indian assets for seizing to recover amount due from govt
3 years, 7 months ago

Cairn identifies $70 billion Indian assets for seizing to recover amount due from govt

The Hindu  

UK's Cairn Energy has identified $ 70 billion of Indian assets overseas for potential seizure to collect $ 1.72 billion due from the government -- a move if successful will put India in league with Pakistan and Venezuela which faced similar enforcement action over failure to pay arbitration awards. Cairn plans to move courts in the US to Singapore for …

Cairn Energy Sues Air India to Enforce $1.2 Billion Arbitration Award
3 years, 7 months ago

Cairn Energy Sues Air India to Enforce $1.2 Billion Arbitration Award

News 18  

Cairn Energy has sued India’s flagship carrier Air India to enforce a $1.2 billion arbitration award that it won in a tax dispute against India, according to a U.S. District Court filing reviewed by Reuters. Cairn filed the lawsuit on Friday in the U.S. District Court for the Southern District of New York, seeking to make Air India liable for …

India asks state-run banks to withdraw cash held abroad over Cairn dispute: Report
3 years, 7 months ago

India asks state-run banks to withdraw cash held abroad over Cairn dispute: Report

India Today  

India has asked state-run banks to withdraw funds from their foreign currency accounts abroad, two government officials and a banker said, as New Delhi fears Cairn Energy may try to seize the cash after an arbitration ruling in a tax dispute. A banker from one of India's 12 state banks, who also asked not be identified, confirmed the ministry had …

India Asks State Banks to Withdraw Cash Held Abroad Over Cairn Dispute: Report
3 years, 7 months ago

India Asks State Banks to Withdraw Cash Held Abroad Over Cairn Dispute: Report

News 18  

India has asked state-run banks to withdraw funds from their foreign currency accounts abroad, two government officials and a banker said, as New Delhi fears Cairn Energy may try to seize the cash after an arbitration ruling in a tax dispute. A banker from one of India's 12 state banks, who also asked not be identified, confirmed the ministry had …

The Hindu Explains | How is the Indian government planning to respond to the Cairn tax ruling?
3 years, 9 months ago

The Hindu Explains | How is the Indian government planning to respond to the Cairn tax ruling?

The Hindu  

The story so far: In December 2020, a three-member tribunal at the Permanent Court of Arbitration in the Netherlands ruled against India in its long-running tax dispute with the U.K.-based oil and gas company Cairn Energy Plc and a subsidiary, Cairn UK Holdings Ltd. The dispute started in early 2014 when Indian tax authorities started questioning Cairn Energy requesting information …

India filing appeal against Cairn arbitration award, say sources
3 years, 9 months ago

India filing appeal against Cairn arbitration award, say sources

The Hindu  

India is in the process of filing an appeal against an arbitration panel ruling asking it to return $1.2 billion to British oil firm Cairn Energy Plc, sources said on Wednesday. India is in the process of filing an appeal in the Cairn arbitration award case, they said, adding it was well within India’s sovereign powers to redress the situation …

India will file appeal in Cairn arbitration case
3 years, 9 months ago

India will file appeal in Cairn arbitration case

Live Mint  

India will file an appeal in the Cairn arbitration award case relating to the tax dispute concerning the British oil firm, sources said. They said Cairn Energy set up "a tax abusive structure" and did not pay taxes anywhere in the world on the gains that it made in India. However, India is open for a constructive settlement of tax …

US, UK and 3 Other Courts Confirm $1.4 Bn Arbitration Award Against India
3 years, 9 months ago

US, UK and 3 Other Courts Confirm $1.4 Bn Arbitration Award Against India

News 18  

Courts in five countries including the US and the UK have given recognition to an arbitration award that asked India to return USD 1.4 billion to Cairn Energy plc – a step that now opens the possibility of the British firm seizing Indian assets in those countries if New Delhi does not pay, sources said. Cairn Energy had moved courts …

Despite arbitration tug of war, mutual settlement is key
3 years, 9 months ago

Despite arbitration tug of war, mutual settlement is key

The Hindu  

For the Indian foreign direct investment landscape, the year 2020 may have been a welcome bag of enhanced equity inflows, bold policy changes and billion-dollar milestones. However, international decisions against Government of India in the cases of Cairn Energy and Vodafone in the final quarter of 2020, and the decision by India to appeal against these awards, have served to …

Cairn files case in U.S. to push India to pay $1.2 bn award
3 years, 10 months ago

Cairn files case in U.S. to push India to pay $1.2 bn award

The Hindu  

Cairn Energy has filed a case in a U.S. district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India, a court document showed, ratcheting up pressure on the government to pay its dues. The case marked a first step in Cairn’s efforts towards recovering its dues, potentially by seizing Indian assets, if the …

Cairn Energy threatens to seize Indian assets abroad in tax case
3 years, 10 months ago

Cairn Energy threatens to seize Indian assets abroad in tax case

India Today  

Cairn Energy has begun to take steps to identify Indian assets overseas against which it can enforce the $1.2 billion award it won last month in a treaty arbitration case against the South Asian nation, according to a letter seen by Reuters. Read | Setback for India as govt loses retrospective tax dispute case against energy giant Cairn A copy …

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn
3 years, 11 months ago

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn

Firstpost  

In 2016, the prime minister was quoted by the Financial Times as saying that the government “will not resort to retrospective taxation; we are making our tax regime transparent, stable and predictable” New Delhi: A three-member tribunal at the Permanent Court of Arbitration in The Hague cited statements by Prime Minister Narendra Modi and other ministers pledging not to use …

In Cairn Judgement Against India, Hague Court Cites PM Modi's Statement Pledging Not to Use Retrospective Tax
3 years, 11 months ago

In Cairn Judgement Against India, Hague Court Cites PM Modi's Statement Pledging Not to Use Retrospective Tax

News 18  

A three-member tribunal at the Permanent Court of Arbitration in The Hague cited statements by Prime Minister Narendra Modi and other ministers pledging not to use retrospective taxation to overturn a Rs 10,247 crore tax demand on British oil and gas company Cairn Energy Plc. It ruled that the 2006 reorganisation of Cairn Energy’s India business prior to listing on …

Setback For Government As Cairn Energy Wins Arbitration Ruling In High-Profile Tax Dispute - What Is The Case?
4 years ago

Setback For Government As Cairn Energy Wins Arbitration Ruling In High-Profile Tax Dispute - What Is The Case?

ABP News  

Elon Musk Reveals Apple CEO Refused Talks To Acquire Tesla At $60 Billion Cairn Energy has won an international arbitration case against the Indian government over a tax dispute that made international investors nervous over retrospective tax claims on companies. The tribunal ruled unanimously that India had breached its obligations to Cairn under the UK-India Bilateral Investment Treaty and awarded …

Cairn Energy wins tax arbitration against India: What the case is all about
4 years ago

Cairn Energy wins tax arbitration against India: What the case is all about

Business Standard  

India lost the Cairn arbitration case.The case was related to the retrospective tax amendment law and the verdict came late night Tuesday. Cairn received a notice from the income tax department in January 2014, raising a preliminary assessment of Rs 10,247 crore tax liability relating to the group reorganisation done in 2006, when Cairn UK transfered about 10 per cent …

Cairn Energy Wins Investment Treaty Arbitration Against India Over Tax Dispute: Report
4 years ago

Cairn Energy Wins Investment Treaty Arbitration Against India Over Tax Dispute: Report

News 18  

Cairn Energy has won an international arbitration case against the Indian government over a tax dispute, ending one of the most high profile disputes in the country, two sources with direct knowledge of the matter told Reuters. Cairn in March 2015 filed a formal dispute against a demand for more than $1.6 billion from the Indian tax department that dates …

Setback for India as govt loses retrospective tax dispute case against energy giant Cairn
4 years ago

Setback for India as govt loses retrospective tax dispute case against energy giant Cairn

India Today  

In what seems to be another setback for India after Vodafone, energy giant Cairn has won an international arbitration against the government over a retrospective tax dispute, said the company on Wednesday. A three-member tribunal, comprising a judge appointed by the Indian government, ruled that India’s claim of Rs 10,247 crore in past taxes over a period of 2006-07 internal …

SC Says Foreign Arbitration Award in Favour of Vedanta Not Against Indian Public Policy
4 years, 3 months ago

SC Says Foreign Arbitration Award in Favour of Vedanta Not Against Indian Public Policy

News 18  

In a major setback to the Centre, the Supreme Court on Wednesday said the requirement of procedural fairness constitutes a fundamental basis for the integrity of the arbitral process, as it upheld a foreign arbitration award in favour of Vedanta and Videocon. The government had argued that under the Indian law, a foreign arbitration award can be challenged if it …

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