The Indian government on Wednesday has said that it will explore all legal avenues in the arbitration case that it lost to Cairn Energy Plc. The government's statement followed that from Cairn Energy Plc which said that it had won the arbitration against the Indian government over a tax dispute arising from demand of $1.2 billion from tax department on listing of Indian operations back in 2007.
The government will consider all options including legal recourse after studying the award passed by tribunal in the arbitration case by Cairn Energy Plc, the finance ministry said in a statement on Wednesday.
The government will be studying the award and all its aspects carefully in consultation with its counsels, it said.
"After such consultations, the government will consider all options and take a decision on further course of action, including legal remedies,” the government added.
The Indian government has lost arbitration case to energy giant Cairn and has been asked to pay damages worth $1.2 billion to the UK oil major. The verdict, which came late night on Tuesday, comes three months after India lost arbitration to Vodafone over the retrospective legislation.
According to the reports, an international arbitration tribunal ruled that India’s tax claim was not a valid demand. New Delhi can appeal against the ruling which serves a double-blow to Prime Minister Narendra Modi’s government after a similar loss against Vodafone.
