Cairn CEO seeks appointment with FM on arbitration award
Cairn Energy Plc CEO Simon Thomson has said he expects to meet Finance Minister Nirmala Sitharaman next week in an attempt to get India to ‘swiftly’ honour a $1.4 billion tax verdict.
Last month, the Edinburg-based firm had written to the Centre saying it would be forced to seize Indian government assets if New Delhi fails to pay it $1.4 billion after losing a bitter dispute over retrospective taxes.
“Cairn Energy CEO Simon Thomson is looking forward to meeting the Government of India Finance Minister in Delhi next week,” the company tweeted with a video of the chief executive urging a swift honour of the tax verdict.
An international tribunal had in December unanimously ruled that India violated its obligations under the UK-India Bilateral Investment Treaty in 2014, when the income tax department slapped a Rs 10,247 crore tax assessment using legislation that gave it powers to levy taxes retrospectively over alleged capital gains in a 2006-07 reorganisation of Cairn’s India business. Before its listing, the tax department seized Cairn’s residual 10 per cent stake in Cairn India.“The arbitration is now finalised and the award has been given and we would request along with others, that the Indian government moves swiftly to adhere to the award that has been given,” Thomson said.
This, he said, was important to Cairn’s shareholders, “who are global financial institutions and who want to see a positive investment climate in India.”
Cairn is seeking a meeting with the Finance Minister to understand the Indian government’s response to the arbitration award.