An international arbitration tribunal awarded $1.2 billion in damages plus interest and costs to British oil explorer Cairn Energy Plc in a tax dispute with the Indian government, dealing a blow to New Delhi’s efforts to tackle aggressive tax avoidance by foreign companies.
Cairn approached the tribunal after India’s 2015 tax demand of $2.74 billion over the group’s reorganisation in 2006, resulting in the creation of Cairn India Ltd.
The tribunal has a member each from Cairn and the Indian government as well as a neutral arbitrator.
