Millennium Post

Vedanta slaps Notice of Claims on Centre

Vedanta slaps Notice of Claims on Centre
After Cairn Energy of UK, London- listed Vedanta Group has slapped a Notice of Claims against the Indian government challenging the Rs 20,497-crore tax imposed on its subsidiary using retrospective legislation.

The billionaire Anil Agarwal-led group said it will take "all necessary steps" to protect interest against the tax notice on Cairn India. The Group filed the notice against I-T Department move to impose Rs 20,497 crore in taxes and penalties on Cairn India for allegedly failing to deduct tax on capital gains made by its former parent Cairn Energy while doing a business reorganisation seven years back.

Cairn Energy had in 2006-07 transfered its India assets including the giant Rajasthan oil fields to a new company, Cairn India and got it listed on stock exchanges. It sold major shareholding in Cairn India to Vedanta in 2011. “... Vedanta's Board of Directors has instructed counsel to file a notice of claim against the GoI under the UK-India bilateral investment treaty (BIT) in order to protect its legal position and shareholder interests," Vedanta said in a filing to the London Stock Exchange. "If enforced, such tax demand would have serious consequences for Cairn India and therefore Vedanta's investment in Cairn India," the metal, mining and oil major said.

Indian government has also made a parallel tax demand on Cairn UK Holdings, for which the Edinburgh-based company has sought arbitration and is seeking compensation under the UK-India
Investment Treaty.

PTI

PTI

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