4 November 2021: Britain's Oil and gas explorer Cairn Energy PLC for the purpose of participating in new scheme introduced under latest Indian legislation the ‘Taxation Laws (Amendment) Act 2021’ has given undertakings to the Indian government that it is taking back all cases as part of the settlement of the dispute arising from the levy of retrospective taxes and such withdrawal will result in reimbursement of ₹7,900 crore.
Cairn stated that the alliance towards accelerating the refund process within new rule is for paying special dividend worth $700 million and $200 million for buyback of share and remaining will be utilized for further expansion at low cost, sustainable production base. Under this new rule the company requires to give undertaking to government that they and related parties withdraw all pending litigation, proceeding for appellate forum, arbitration, conciliation or meditation &enforcing and any pursuing attachments regarding any rewards, order and judgements will be considered as void. It is also clarified that this withdrawals doesn’t lead to any claims of damages, interest and cost from government. New taxation amended act requires an obligatory documentation under rule 11UF(3) of the Indian Income Tax Rule 1962.