Cairn Energy PLC, an independent, UK-based oil and
gas exploration, development and production company, has won arbitration
against the Indian government on Wednesday.
It was over levying Rs 10,247 crore - in Indian
currency - or $1.2 billion in retrospective taxes, that the Indian government had claimed during
the period, 2006-07, followed by a reorganization of the company’s Indian arm.
A tribunal ruled that the Indian government must
release the funds withheld along with the interest to Cairn Energy PLC, the
Scottish oil exploring company.
Cairn Energy PLC claims the role it played over a
long period of time in exploring, discovering, developing and producing oil and
gas in a variety of locations in the world, while involving itself as an avid operator
and partner in all stages of the oil and gas life cycle.
The share price of the company surged exponentially at the news, before falling moderately for an adjustment.
