Cairn to return $700 million to shareholders when India tax row resolved

NEW DELHI: Britain’s Cairn Energy pledged to return up to $700 million to shareholders through a special dividend and a share buyback this year, as it signalled a long-running billion dollar tax dispute with India may be nearing an end.

Oil and gas producer Cairn, which has major operations in the South Asian country, said on Tuesday it was considering entering into statutory undertakings with the government after changes to a retrospective tax law at the heart of the row.

Last month, India proposed scrapping the 2012 law and said it would refund companies. Cairn was awarded damages of over $1.2 billion last year in a Dutch court ruling which was challenged by New Delhi.