Day’s developments

A wrap of top stories in India

Day’s developments

Expecting $1.06 billion from India, says Cairn

Cairn said Tuesday (Sept 7) it expects its dispute with the Indian government to end in the “near term,” allowing the company to distribute a special dividend and buy back shares, media reports said. A settlement would bring to an end a multiyear battle, during which Cairn initiated proceedings in numerous locations globally to enforce an arbitration ruling in its favor.

The total payment from India should be around $1.06 billion, Cairn said in a statement. India opened the way to a resolution after scrapping a rule on retroactive taxes that had triggered billions of dollars of arbitration battles with international companies including Cairn and Vodafone Group PLC.

To be eligible for the refund, Cairn said it will be required to withdraw its arbitration award claim, interest and costs, and end all legal enforcement actions.