Centre accepts Cairn’s offer on retrospective tax

November 19, 2021 12:00 am | Updated 06:38 am IST - New Delhi

Firm to get Rs. 7,900-cr. refund: sources

Moving quickly towards ending a retrospective tax dispute with a firm that gave India its largest oilfield, the government has accepted Cairn Energy PLC’s undertakings which would allow for the refund of taxes, sources said.

The company had earlier this month given required undertakings indemnifying the Indian government against future claims as well as agreeing to drop any legal proceedings anywhere in the world.

The government has now accepted this and issued Cairn a ‘Form-II’, committing to refund the tax collected to enforce the retrospective tax demand, two sources in direct knowledge of the development said.

Following the issuance of Form-II, Cairn will now start withdrawing all cases in international courts.

Once this is complete, the company will be issued a Rs. 7,900 crore refund, they said, adding the withdrawal of cases may take up to three-four weeks.

A senior finance ministry official confirmed the government accepting the company’s undertakings.

Cairn will now start withdrawing all cases in international courts

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.