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cairn: US court halts suit, allowing Cairn to settle row with India – Times of India

NEW DELHI: A New York courtroom has paused Cairn Energy’s pursuit of US belongings of Air India for the restoration of a $1.2-billion arbitral award, in order to permit the British agency to achieve a settlement with the Indian authorities on the longdrawn dispute.
The New York district courtroom delayed the tax go well with to November 18, in keeping with courtroom paperwork. This follows Cairn Power and Air India collectively asking the courtroom to remain additional proceedings in view of the federal government enacting a recent regulation to scrap retrospective taxation within the nation.
The brand new regulation will lead to withdrawal of the Rs 10,247-crore tax demand that the federal government had sought from Cairn. Sources with direct information of the matter mentioned the finance ministry is framing guidelines that may result in withdrawal of the retrospective tax demand on Cairn and 16 different firms, together with Vodafone Group of UK.
These guidelines require the businesses to withdraw all litigations in opposition to the federal government in return for being refunded any cash that was collected to drive the retrospective tax demand.
A format for the enterprise that the businesses should furnish committing to withdraw litigations is beneath finalisation and ought to be launched in coming days, they mentioned. Corporations should use that format to offer an enterprise, after which the cash might be refunded.
In all, the federal government has to return about Rs 8,100 crore, of which Rs 7,900 crore is due solely to Cairn.
Cairn has indicated that the refund, with out curiosity and penalty, was acceptable to it — opening an avenue to settle the seven-year-old dispute with Indian authorities




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