Capricorn Energy withdraw litigation in India tax case
Capricorn Energy said it had withdrawn all litigation in a tax case with the Indian government, clearing the way for a $1bn refund.
The company, formerly Cairn Energy, said it had “entered into the final stage in its undertakings with the Government of India by withdrawing all global enforcement proceedings”.
Capricorn won an award had gone to courts in several countries last year to enforce an arbitral award it had won against India in December 2020 in the retrospective tax case. The arbitration tribunal had ordered India to pay $1.2 billion plus interest and cost to the UK firm.
The Indian government had seized Capricorn shares, dividends and tax refunds to meet a demand made in January 2016 for capital gains tax, interest and penalty after for a reorganisation of assets at its India unit in 2006.