The UK firm had earlier given required undertakings indemnifying the Centre against future claims as well as agreeing to drop any legal proceedings anywhere in the world.
UK firm Cairn Energy had said it would drop litigation to seize Air India's assets in the US after it gets the $1 billion refund, which is due to it after India scrapped its retrospective tax law.
The move follows the Modi govt agreeing to refund Rs 7,900 crore to Cairn & scrapping retrospective tax, resulting in withdrawal of Rs 10,247 crore tax demand on the British firm.
Cairn, which last year won an arbitration award for $1.7 bn over a controversial retrospective tax demand, has called Air India 'an alter ego' of the Indian govt.
The govt earlier enacted Taxation Laws (Amendment) Act which removed its power to slap capital gains levies wherever ownership had changed hands overseas but their assets were in India.
Retrospective taxes are just one facet of arbitrary state action. MNCs that have committed billions of dollars have many other legal minefields awaiting them.
Decision will end India’s dispute with Vodafone Plc and Cairn Energy Plc, and in 15 other similar cases. FM Sitharaman notes that the retrospective tax became a ‘sore point’ with investors.
A tax dispute stemming from a 15-year old transaction has adversely impacted India’s efforts to project itself as an investor friendly destination. ThePrint explains
The Indian planning system did not encourage individuals based on ‘what they knew’, but on ‘whom they knew’. Many left for countries that recognised their talent.
The new law, which the government has framed as a moral duty, forced major platforms like Dream11 & Zupee to shut operations, wiping out hundreds of crores in market capitalisation.
Joint Doctrine for Special Forces Operations, released Wednesday, also outlines plans for the future expansion of AFSOD and the creation of Joint Service Training Institutes.
Putin sees this as a victory. Europeans have decided to deal with Trump on his terms for the sake of the larger Western alliance. We look at the lessons for us in India.
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