Billionaire Anil Agarwal-led Vedanta and its 14 related group entities have settled ₹20,495-crore disputes related to retrospective tax levied in March, 2015.
Vedanta acquired Cairn India in 2011 and subsequently merged it with itself in 2017.
India slapped a tax of ₹10,247 crore on UK's Cairn Energy Plc for alleged capital gains made on a internal reorganisation prior to the listing of its India business. The Income Tax Department had made a claim of ₹20,495 crore in taxes, including penalty from Cairn India for failing to deduct tax on capital gains made by its British parent.
The government recently made amendments to the Indian Income Tax Act which nullified the retrospective tax.
Following this, Vedanta along with its related group entities, filed the required statutory forms to settle the dispute and it was accepted by the jurisdictional commissioner, said Vedanta in a statement on Monday.
On its part, Vedanta has withdrawn the income tax appeal pending before the Delhi Bench of the Income Tax Appellate Tribunal and writ petition filed before the Delhi High Court.
Vedanta has also filed the application seeking withdrawal of the claim and termination of the arbitral proceedings pending before the Permanent Court for Arbitration in the International Court of Justice.
The company and its related group entities have also declared that no further proceedings or claims will be initiated in any court or tribunal whether in India or overseas.