New Delhi : British oil major Cairn Energy (now renamed as Capricorn Energy Plc) on Thursday said it has received Rs 7,900 crore tax refunds from Indian government which had been collected to enforce a retrospective tax demand.
“Capricorn is pleased to confirm that the expected Indian tax refund of INR 79 billion (Rs 7,900 crore) has now been paid and net proceeds of US$1.06 billion have been received,” the company said in a statement.
Cairn Energy has changed its name to Capricorn Energy Plc.
The oil major said in its statement that a circular is expected to be issued in early March detailing the shareholder resolutions required in connection with the proposed shareholder return of up to US$ 700 million, comprising a US$ 500 million tender offer and US$ 200 million ongoing share repurchase programme.
Cairn had decided to end the long-running tax dispute with India after the government came up with a legislation last year to scrap all retrospective tax demands. It offered the companies to settle the disputes by withdrawing law suits and also giving an undertaking that no damage claims would be filed.
Cairn withdrew all law suits to fulfill the required conditions to end the dispute and get the refunds.
British oil major was the first company out of about 17 which had publicly announced to settle the retro tax dispute after the government brought the necessary legislation.