Is the Cairn legal case now closed after the compensation has been paid?

In what will be seen as a significantly positive signal to the global investment community, the Indian government has confirmed that it had refunded the entire Rs.7,900 crore to Cairn Energy. Incidentally, Cairn Energy has now been renamed as Capricorn Energy. This virtually brings to a close the dispute over retrospective taxes. Capricorn Energy has meanwhile officially confirmed that it had received net proceeds of $1.06 billion from Indian government.

Capricorn plans to distribute a big chunk of this payment to its shareholders. They had already withdrawn all lawsuits against the Indian government. This was done under a special settlement scheme announced by the government last year. The amount of $1 billion does not represent any compensation but is the amount of tax refund withheld and proceeds from the sale of shares from the Vedanta account, done by the IT department.