Cairn Energy to drop lawsuits to seize Indian properties abroad

UK-based Cairn Energy plc on Wednesday said it has agreed to drop its lawsuits to seize Indian properties abroad.

Meeting the requirements of a new legislation that scraps the levy of retrospective taxation, the company has given the required undertakings indemnifying the Indian government against future claims as well as agreeing to drop any cases anywhere in the world.

Cairn said the Indian government now has to accept this and issue the company a so-called Form-II, that will commit India to refund the tax collected to enforce the retrospective tax demand.

Following the issue of Form-II, Cairn will withdraw legal proceedings and will get a refund of Rs 7,900 crore.