Energy giant Cairn wins arbitration against India in tax dispute
Source: Xinhua | 2020-12-24
Britain's energy giant Cairn Energy Plc Wednesday announced that the tribunal established to rule on its claim against the Indian government over a high-profile tax dispute has unanimously ruled in its favor and awarded it 1.2 billion U.S. dollars plus interest and costs.
"Cairn's claim was brought under the terms of the UK-India bilateral investment treaty, the legal seat of the tribunal was the Netherlands and the proceedings were under the registry of the Permanent Court of Arbitration," reads a statement issued by the Edinburgh-based energy major.
"The 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 U.S. dollars plus interest and costs, which now becomes payable."
The case had gone into arbitration in 2015 when Cairn Energy contested a demand from Indian tax authorities for 1.4 billion U.S. dollars owed on capital gains related to the 2007 listing of its Indian unit.
Busiunion
Busiunion