No formal request made by Cairn Energy to solve tax dispute, Centre informs Parliament

On the ongoing Cairn Energy tax dispute, the central government on Monday informed the parliament that it has not received any formal request from British oil major Cairn Energy to resolve the tax dispute.

No formal request made by Cairn Energy to resolve the tax dispute 

MoS Finance Pankaj Chaudhary in response to a written query on tax dispute & arbitration award demanded by the British oil manufacturer in Lok Sabha said that there is no notice /formal order has been issued by the entity to the central government.  However, he accepted that an order passed by the French court, allowing Cairn Energy to freeze Indian assets have reached India through diplomatic channels. Replying to a query, whether the french court order has permitted Cairn to freeze Indian governments property/assets in Paris, he said, "An order has been passed by a French court freezing certain Indian Government properties in the case pertaining to Cairn Energy. The same has been communicated through diplomatic channels."

Meanwhile, he also added that an international tribunal has requested the Indian government to pay Cairn an arbitration amount of $1232.8 along with the interest, which amounts to $22.38. He informed that this order has also been communicated to the Indian government through diplomatic channels.

Govt taking all appropriate legal steps to protect its interest in Cairn Energy case: MoS Finance in Rajya Sabha

Earlier, on July 27, MoS Finance, Pankaj Chaudhary said in Rajya Sabha that India is taking all appropriate legal steps to protect its interest in the Cairn Energy arbitration case.
 

"For handling enforcement proceedings, an international law firm, with relevant experience, has been engaged. In consultation with its counsel team, the Government is taking all appropriate legal steps to protect its interest," said Chaudhary. He also confirmed that a French Court has ordered freezing certain Indian assets in France in the case pertaining to Cairn Energy.

"An order has been passed by a French Court freezing certain Indian Government properties in the case pertaining to Cairn Energy," said Pankaj Chaudhary in Rajya Sabha, as reported by ANI. British oil and gas company Cairn Energy is seeking to recover USD 1.2 billion from New Delhi after winning an arbitration against retro tax. When he was asked about "whether permanent Court of Arbitration at the Hague has ruled USD 1.2 billion awards in favour of Cairn Energy, Chaudhary said, "Arbitral tribunal (which had its seat in The Hague) pronounced its award on 21st December 2020 in favour of Cairn Energy Plc & Cairn UK Holdings Ltd (CUHL). The Indian government has filed an appeal against the order in the Hague Court of Appeal on 22nd March 2021.

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With ANI Inputs