New Delhi: A New York the court stayed cairn energyAir India’s pursuit of US assets to recover an arbitral award of $1.2 billion to allow the British firm to settle with the Indian government over a long-running dispute.
According to court documents, the New York District Court adjourned the tax suit until November 18. it is like this stupa Energy and Air India jointly asked the court to stay further proceedings, as the government is enacting a new law to end retrospective taxation in the country.
As a result of the new law, the government has withdrawn its tax demand of Rs 10,247 crore from Cairn. Sources with direct knowledge of the matter said that Finance Ministry Is making rules that will withdraw the retrospective tax demand on Cairn and 16 other companies, including Vodafone Group of Britain.
These rules require companies to withdraw all lawsuits against the government, in return for any money collected to enforce the retrospective tax demand.
He said a draft for commitments to companies to withdraw litigation is being finalized and should be released in the coming days. Companies will have to use the format for giving the undertaking, after which the money will be refunded.
In all, the government has to refund around Rs 8,100 crore, of which Rs 7,900 crore is payable only to Cairn.
Cairn has indicated that the refund was acceptable to it without interest and penalty – paving the way for settling a seven-year-old dispute with Indian authorities
According to court documents, the New York District Court adjourned the tax suit until November 18. it is like this stupa Energy and Air India jointly asked the court to stay further proceedings, as the government is enacting a new law to end retrospective taxation in the country.
As a result of the new law, the government has withdrawn its tax demand of Rs 10,247 crore from Cairn. Sources with direct knowledge of the matter said that Finance Ministry Is making rules that will withdraw the retrospective tax demand on Cairn and 16 other companies, including Vodafone Group of Britain.
These rules require companies to withdraw all lawsuits against the government, in return for any money collected to enforce the retrospective tax demand.
He said a draft for commitments to companies to withdraw litigation is being finalized and should be released in the coming days. Companies will have to use the format for giving the undertaking, after which the money will be refunded.
In all, the government has to refund around Rs 8,100 crore, of which Rs 7,900 crore is payable only to Cairn.
Cairn has indicated that the refund was acceptable to it without interest and penalty – paving the way for settling a seven-year-old dispute with Indian authorities
.