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Rediff.com  » Business » Vedanta to file notice of claim in Cairn India tax case

Vedanta to file notice of claim in Cairn India tax case

March 28, 2015 09:31 IST

Vedanta Resources Plc said it would file a notice of claim related to a tax demand of about  Rs 205 billion ($3.29 billion) its unit Cairn India Ltd received from the Indian government this month.

The notice is the first step required before seeking international arbitration under the UK-India bilateral investment treaty, Vedanta said on Friday. London-listed Vedanta has most of its operations in India.

Cairn Energy Plc, which sold its stake in Cairn India to Vedanta in 2011, also filed a notice of dispute under the treaty this week after receiving a tax demand of more than $1.6 billion.

Cairn India received the retrospective tax demand in relation to its 2007 listing in India.

The tax demands come at a time the Narendra Modi government is seeking to reduce tax-related litigation and boost much-needed foreign investment. Vedanta's shares were down 1.6 per cent at 531.50 pence at 1402 GMT on the London Stock Exchange.

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