Cairn accepts $1bn refund offer, to drop cases ag inst India within days: CEO Simon Thomson
NEW DELHI: UK-based Cairn Energy PLC on Tuesday said it will drop litigations to seize Indian properties in countries ranging from France to the US, within a couple of days of getting a $1 billion refund resulting from the scrap of a retrospective tax law.
The firm, which gave India its biggest onland oil discovery, termed "bold" the legislation passed last month to cancel a 2012 policy that gave the tax department power to go back 50 years and slap capital gains levies wherever ownership had changed hands overseas but business assets were in India.
The offer to return money seized to enforce retrospective tax demand in lieu of drop all litigations ag inst the go nment "is acceptable to us," Cairn CEO Simon Thomson told PTI in an interview from London.
Cairn will drop cases to seize diplomatic apartments in Paris and Air India airplanes in the US in "a matter of a couple of days" after the refund, he said adding Cairn's shareholders are in agreement with accepting the offer and moving on.
"Some of our core shareholders likes BlackRock and Franklin Templeton agree (to this). Our view is supported by our core shareholders (that) on bnce it is better to accept and move on and be pragmatic. Rather than continue with something negative for all parties which could last for many years," he said.
Main objective was to block FDI, reforms in India & finally India got rid of it. This should have been the first step by Modi once he took charge in 2014.Better late than never
Those who implemented the retrospective tax are silent on this.
Retrospective Taxation.. probably the most idiotic law ever passed in parliament.. As a nation we lost ten years of golden opportunities in investment from abroad.. hope the reversal can bring up fresh investments in manufacturing and service :)
This is a win for Modi govt and FM Mrs. Seetharn. Hopefully the govt will get the other litigating companies also to drop the cases and go for out of court settlement paved for, by this new law.
PM must be tried for treason for this fiasco. What a huge embarrassment for India in front of the international corporate community. This is what happens when u corrupt selfish hypocrites to power who dont care about the nation, just wanna make money in their tenure n at the time of leaving office they do things that the nation then has to carry that burden until the next few decades.
Good dialogue has been made by Go nment of India at all the levels. Finally, Cairns agreed.
The minister who brought this law was given bharatratna, for bringing shame on to this nation.
Good to change the laws that's affect the investment from abroad..
Rubbish Congress embarrassed India everywhere in front of the entire world...
It was a real bad bad decision of Indian govt in 2012 to put retrospective law. Good that Modi govt repealed it now.
indeed a bold move to get rid of retrospectivenss . hope the move will signal and act as catalyst to attract more foreign investments benefitting country . needless to say , go nment may impress upon such investors to honour and accept Make in India proviso
Retrospective Tax is one of the most stupidest things to do , and it only happens in 3rd world countries ... Only solidify the current tax re gie and move on .....
Omg. the cost will be...again put on petrol tax.
BJP resolved one more issue created in past by Congress
So why did they wait 7 years?
Its good thet the govt. was jolted to action due to litigation by Cairn !
Modi govt bows to foreign companies pressure,
Modi will give 7900 cr to them.
common people will understand them as true , because our govt wont come out and expn it in all media.
Italian mafia Rahul pappur backed by thief chidambar under rubber stamp incompetent PM Manmohan singh ruined indias reputation as stable country for buisnesses. Glad we have Modi.
What does Modi have to say? He continued the same policy for 8 years as well.
Now, the GOI has to be more Careful while enacting any Law with retrospective effect. It is not Good in taste, especially when you are luring the Foreign Investors for Make in India.