Cairn expects arbitration award in retro tax case by this summer

British oil explorer Cairn Energy Plc expects an international arbitral tribunal to give a decree by the summer of 2020 on its challenge to the Indian government seeking ₹10,247 crore in retrospective taxes.

The three-member tribunal, which had in December 2018 completed main court hearings in the British company’s challenge to the Indian government using a retrospective legislation to seek ₹10,247 crore in taxes, was supposed to give an award by February 2019, but in March 2019, it delayed it to 2019-end and then to the summer of 2020.

“All formal hearings and submissions have now been made and the tribunal is in the process of drafting its award. The tribunal has indicated that it expects to be in a position to issue the award in the summer of 2020,” Cairn said in its half-yearly earnings announcement on Tuesday.