New Delhi
As part of the settlement reached with the government in the seven-year-old dispute over the levy of back taxes, the company - which is now known as Capricorn Energy PLC - has withdrawn all cases that were brought to collect the tax refund ordered by an international arbitration tribunal after rescinding retrospective raising of demand, according to an advertisement it issued in Indian newspapers on Wednesday.
The government had initially refused to honour the December 2020 arbitration award but in August 2021 brought a law to scrap all retrospective tax demands and refund money collected, after it faced prospects of assets - ranging from flats used by its diplomatic staff in Paris and Air India planes in the US - being seized to recover the refund due.
In the advertisement - a requirement under the August 2021 law - the company said “it has entered into the final stage in its undertaking with the Government of India by withdrawing Indian and global appellate and enforcement proceedings.”
“This action is the final necessary step by the company under the rules of India’s Taxation (Amendment Act), 2021,” it said.
The company on November 26, 2021, initiated proceedings to withdraw lawsuits it had filed in several jurisdictions to enforce an international arbitration award which had overturned the levy of Rs 10,247 crore retrospective taxes and ordered India to refund the money already collected. First the lawsuit brought in Mauritius for recognition of the arbitration award was withdrawn, followed by similar measures in courts in Singapore, the UK, and Canada.
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