After the USD 1.2 billion (approximately Rs 8, 729.70 crore) arbitration award, European company Cairn Energy will be discussing with the Indian government the future course of action. The first step in the direction is the meeting of Cairn Energy’s chief executive officer Simon Thomson with Finance Secretary Ajay Bhushan Pandey today.
“Cairn’s CEO has sought a meeting with the Finance Minister. Now he will be having a meeting with the Finance Secretary and other senior officials of the ministry,” said an official, reported Indian Express.
There are reports that suggest that the Indian government is preparing to appeal. In the meanwhile, the government is considering offering concession to the company only under Vivad se Vishwas scheme, under which the government will waive interest and penalty on the principal tax demand, stated a report by Live Mint.
In December 2020, Cairn Energy won a major relief as Permanent Court of Arbitration at The Hague had ruled that the Indian government’s retrospective tax demand against the global oil and gas major was ‘inconsistent’ and ‘breach of the fair and equitable treatment’ with the UK-India bilateral treaty.