British oil explorer Cairn Energy Plc on Tuesday said it is seeking from the Indian government USD 1.4 billion (about Rs 10,300 crore) in losses arising from the expropriation of its investments to enforce a retrospective tax demand.
In its half-yearly earnings statement, the company said it expects an international arbitral tribunal to shortly give a decree on its challenge to the Indian government seeking Rs 10,247 crore in retrospective taxes.
“The main evidentiary hearing of Cairn’s claim under the (UK-India Bilateral Investment) Treaty took place in August 2018 in The Hague with a final hearing in December 2018. All formal hearings and submissions have now been made and the tribunal is in the process of drafting its award,” the firm said.
The tribunal, it said, has indicated that “it expects to be in a position to issue the award after the end of the summer of 2020, with no significant delay expected as a result of COVID-19.”
Cairn said it is seeking “full restitution for losses of more than USD 1.4 billion resulting from the expropriation of its investments in India in 2014; continued attempts to enforce retrospective tax measures; and the failure to treat the company and its investments fairly and equitably.”
