InvestorQ : Has Cairn UK accepted the settlement offer given by India for the retrospective tax issue?
Rutuja Nigam made post

Has Cairn UK accepted the settlement offer given by India for the retrospective tax issue?

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3 months ago
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It looks like the dispute between the Indian government and Cairn Energy UK could finally end. Cairn CEO has admitted that they were favourably disposed towards the $1 billion settlement offered by the Indian government. Since, it also contains a condition that the other party should withdraw all legal cases and claims, the Cairn CEO has committed that Cairn UK would withdraw all legal cases against Indian government in various courts.

Indian government has already offered to return the money seized without interest. Even the large institutional shareholders of Cairn UK like Fidelity and Blackrock are sold on to the idea of a settlement that will see an inflow of $1 billion into the coffers of Cairn UK. Cairn UK has already said that it would like to distribute $700 million out of this money as special dividend to shareholders. This should be beneficial for Air India too.

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