India challenges $1.2 billion Cairn arbitration award, says never agreed to arbitrate tax dispute
NEW DELHI: India has challenged an international arbitration tribunal asking it to return $1.2 billion to UK's Cairn Energy Plc on grounds that it had never agreed to arbitrate over a "national tax dispute", the finance ministry said on Sunday.
While the go nment appointed a judge on the three-member arbitration panel and fully participated in the proceedings ag inst India seeking Rs 10,247 crore in back taxes from Cairn, the ministry said the tribunal "improperly exercised jurisdiction over a national tax dispute that the Republic of India never offered and/or agreed to arbitrate."
India had seized and sold shares of Cairn in its erstwhile India unit, confiscated dividend due and withheld tax refunds to recover the tax demand it had levied two years after passing a law in 2012 that gave it powers to levy tax retrospectively.
Cairn invoked arbitration under the India-UK bilateral investment treaty.
In December last year, Cairn won an award that held the levy of taxes using the 2012 law unfair on the company and the tribunal asked the Indian go nment to return USD 1.2 billion plus cost and interest.
Our sy em has gone mad. Now also if foreign investors will move our condition will be worse then Pakistan. Our Indian top buiseness people only knows grab money from middle class and poor people. Their contributions to technology and product building is 0.
Who is responsible for this mess.?
After the Iran oil gas fiasco, its Cairn now.
No tax can be with retrospective effect.
Surely this will encourage foreign investments in India.
Retrospective tax was a gift from Pranab Mukherjee during UPA2. It was a big disaster and got india involved in many legal batylescwith many international companies .
The matter can only be delayed adding further dge to India's reputation for fair business as arbitrary retrospective tax is not one that can be defended. Krish
Go nment appoints lawyers to fight the case and then say they never agreed to an arbitration. Someone tell Feku this is an international court and not a court in Gujarat where you murder the judge who gives a judgement ag inst you.
Overqualified UPA mess, the legacy disaster we are cleaning.
Another serious mess created by Congress....those Congi parrot supporters are blaming Modi...should understand that BJP is a nationalist ....
In my oion it will be good for the Go nment of India to discuss and settle the issues smoothly by clearing the mess created by the most intelligent people in the previous Go nment instead of caing mud in its face. Already it is earning a bad reputation among international business circule for arbitrariness and it is very unlikely that any favourable orders can comes in India's way.
Does India really have a strong case ?
The objection to jurisdiction should have been taken at the very outset. It is too late now. It seems not only our Finance Minister but our Law Minister too failed on this front.
this mess was created late presi nt and finance minister of congress pranab mukharkjee, why are you blaming everthing on bjp.
This Challenge is a Slap on leftists and hidden Agenda po itical parties.
Retrospective application of law is illegal. Mess created by UPA govt. India should gracefully refund the money and win investor confidence.
shameless fake gandhis and that idiot looking duffer are to blame.
Modi ji play any trick and double standard with any Indian without any fear or shame; it is not to do the same with international companies and foreign nations. We have to respect the laws of the world banks, IMF, International Court and UNSC without playing nay game.
Why not both parties settle it 50-50 and finish it.