New Delhi : UK’s Cairn Energy plc has petitioned an international arbitration tribunal against billionaire Anil Agarwal-led Vedanta Ltd withholding its dividend for last three years despite tax authorities saying there is no attachment in force.
The Hague, the Netherlands-based three-member tribunal, which was constituted to decide on Cairn’s plea against India slapping a Rs 10,247 crore retrospective tax demand and freezing its assets, will hear the petition this week. Income Tax Department officials are however cut up with Cairn Energy for taking up the issue with the arbitration panel as there is no longer any attachment order and the dividend payment is a matter between Vedanta and the British firm. “Cairn India/Vedanta approached the tax department, both verbally and in writing, on multiple occasions seeking a written order so that they can continue to withhold dividend due to Cairn Energy. We did not respond to them,” an official said.