New Delhi : India has time till November to respond to Cairn Energy’s demand for $5.6 billion compensation in the retrospective tax case, said CEO of the British oil firm, Simon Thomson.
Cairn has initiated an international arbitration seeking $ 5.6 billion in compensation from the Indian govt in case the retrospective tax demand of Rs 29,047 crore is not quashed.
“It is important for the arbitration to continue quickly,” he said, after meeting Revenue Secretary Hashmukh Adhia here. While Cairn has filed its Statement of Claims before a three-member international arbitration panel, the government of India has time till November to respond, he said.
“The important thing is to keep this arbitration moving,” he said. A tax demand of Rs 10,247 crore was imposed on Cairn over an intra-group restructuring undertaken in 2006 prior to the IPO of its India unit. Together with back-dated interest, the total demand is over Rs 29,000 crore. “We are confident of our position. We have complied with all regulations and paid all taxes that were due,” he said. Cairn Energy sold majority stake in the India unit, Cairn India, to Vedanta Resources, but retains a 9.8 per cent stake which has been attached by the income tax department.
