NEW DELHI: Barely three months after Vodafone Plc won an international arbitration against India’s Rs 22,100 has crore retrospective tax demand, the country on Wednesday suffered another blow arising from the controversial 2012 amendment to its tax laws. This time, a three-member arbitration tribunal under the Permanent Court of Arbitration, The Hague, has directed India to pay UK-based energy giant Cairn $1.2 billion in damages, along with interest and legal costs.
The final amount India would have to pay if it doesn’t challenge the award is likely to be $1.4 billion (over Rs 10,300 crore), say sources. “The tribunal ruled unanimously that India had breached its obligations to Cairn under the UK-India Bilateral Investment Treaty,” the company said in a statement on Wednesday.
