UK-based Cairn Energy has been allowed to claim dividends on its existing share of Cairn India (CIL), according to a preliminary results announcement.
In the statement, Cairn Energy said a confirmation has been received via the international arbitration.
It noted that “dividends of $51 million due from Cairn India Ltd (CIL) are no longer restricted. Cairn has requested the immediate release of the sum from CIL.”
These claims have been listed under the India Tax Dispute section in the press statement. Cairn Energy has been contesting a ₹29,047-crore tax demand from the government from a retrospective tax levy.
The government alleges that Cairn Energy has accumulated capital gains on a 10-year-old reorganisation of its India unit.Arbitration proceedings
Cairn Energy also said that international arbitration proceedings are progressing in respect of Cairn’s claim under the UK-India Bilateral Treaty and the main statement of claim and the statement of defence are now submitted.