Vedanta to file notice of claim in Cairn India tax case
Cairn India received retrospective tax demand in relation to its 2007 listing in India
Mumbai: Vedanta Resources Plc said it would file a notice of claim related to a tax demand of about 205 billion rupees ($3.29 billion) its unit Cairn India Ltd received from the Indian government this month. The notice is the first step required before seeking international arbitration under the UK-India bilateral investment treaty, said Vedanta on Friday. London-listed Vedanta has most of its operations in India.
Cairn Energy Plc, which sold its stake in Cairn India to Vedanta in 2011, also filed a notice of dispute under the treaty this week after receiving a tax demand of more than $1.6 billion. Cairn India received the retrospective tax demand in relation to its 2007 listing in India.
The tax demands come at a time the Narendra Modi government is seeking to reduce tax-related litigation and boost much-needed foreign investment. Vedanta's shares were down 1.6 percent at 531.50 pence at 1402 GMT on the London Stock Exchange.