India offers Cairn Energy $1bn Refund
According to the Financial Times, India expects to repay $1 billion to UK-based Cairn Energy after scrapping a retrospective tax regulation that sparked acrimonious disputes with notable foreign investors.
On Friday, the lower house of parliament passed a draft law submitted the day before that repealed a 2012 provision allowing New Delhi to tax some foreign investments retroactively. The measure is expected to be approved by the upper chamber as soon as next week.
As part of its efforts to rehabilitate its shattered reputation as an investment destination, New Delhi will drop $13.5 billion in outstanding claims against multinationals such as Vodafone, Sanofi, and brewer SABMiller, now owned by AB InBev, according to the article.
Bajaj stated that around $1.2 billion collected from businesses under the soon-to-be-abolished tax provision would be reimbursed the firms agreed to abandon all existing litigation, including interest and penalty demands. Cairn would receive about $1 billion, while other companies, including Vodafone, would receive $270 million.