InvestorQ : Why have legal experts criticized the government for its move on Cairn with respect to retrospective taxation?
vaishnavi mhatre made post

Why have legal experts criticized the government for its move on Cairn with respect to retrospective taxation?

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vidhya Laxmi answered.
4 months ago
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It is actually ironical that none of the legal experts were willing to give an opinion as long as the government held on to its view that retrospective taxation was non-negotiable. Now that the government has decided to scrap the law, we are seeing a lot of criticism from legal experts. Most of them have made points that are well known and well documented and hence there is not much new in it. It is pragmatism and there is nothing wrong about it.

The Government had attached dividends and tax refunds due to Cairn UK as well as sold shares of Vedanta in their demat account. Finance Ministry, as per latest statements, agreed to refund Rs.8,100 crore to Cairn UK, without interest. Legal luminaries are of the view that the bilateral treaty and international arbitration had to be respected. In a way, it is to the credit of the Supreme Court in the Amazon case that settled this matter beyond doubt.

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