NEW DELHI: The arbitration process initiated by Cairn Energy against the Indian government’s demand of retrospective tax dues worth Rs 10,247 crore has run into a hiccup, with the three-member Arbitral Tribunal indicating that the award will be further delayed to mid-2020, the British firm said on Monday.
The international tribunal, which had completed the main court hearings as long ago as August last year, had examined Cairn Energy’s challenge on the Indian government using retrospective legislation to seek Rs 10,247 crore in taxes related to its erstwhile subsidiary Cairn India. The tribunal was supposed to give an award by February 2019, but it had delayed it to 2019-end in March and now, has delayed it again to the summer of 2020.
“The Arbitral Tribunal has indicated that whilst it is not yet able to commit to a specific award release date, it expects to be in a position to issue the Award in the summer of 2020,” Cairn said in a statement, adding that no reasons have been given by the tribunal for the delay in award.
The company reiterated that it is seeking full restitution for losses totalling more than $1.4 billion resulting from government expropriation of its investments in India in 2014.
The company, which gave the country its biggest oil discovery, received a notice from the Income Tax Department in January 2014, requesting information relating to the group re-organisation done in 2006.