Cairn Energy Plc said on Sunday it had discussed multiple proposals with Indian government officials in recent days in a bid to find a “quick fix” to a long tax dispute with India. In December, an arbitration body awarded the UK company $ 1.2 billion in damages plus interest and costs, after ruling India had breached its treaty obligations to Cairn. bilateral investment between UK and India.
This month, Cairn filed a lawsuit in a U.S. district court to enforce the arbitration award, taking a first step in his efforts to collect dues. The US court this week issued an electronic summons to the Indian government to file its response to the trial within 60 days or be tried by default.
In a statement on Sunday, Cairn said he had had “cordial and constructive discussions” with officials from India’s finance ministry.
“We hope that an acceptable solution can be found, in order to avoid prolonging and further exacerbating this negative problem for all parties,” the company said, adding that it was also ready to take all necessary measures. to protect the interests of its shareholders.
The Indian government welcomes Cairn’s decision to seek a resolution, but plans to appeal the arbitration award and challenge his sovereign right to tax, said a government official in New Delhi, who asked not to be identified.
Cairn took the case to arbitration in 2015 to fight a claim by Indian authorities in 2014 for 102 billion rupees ($ 1.4 billion) in taxes that India claimed to owe on capital gains linked to the listing in 2007 of its local unit.
India lost another major international arbitration case last September against telecom giant Vodafone over a retrospective $ 2 billion tax dispute.