Vedanta has withdrawn cases in the Delhi High Court as well as before an international arbitration tribunal to settle Rs 20,495 crore retrospective tax dispute with the government. The company has used the recently enacted law that scraps all demands levied using a 2012 retrospective tax legislation, to settle the dispute. As conditions for the same, it has withdrawn all legal challenges against the government and given an undertaking to forego all future rights pertaining to the tax demand.
Post slapping of Rs 10,247 crore tax demand on UK's Cairn Energy Plc for alleged capital gains made on a 2016 internal reorganisation prior to the listing of its India business, the Income Tax Department had sought Rs 20,495 crore in taxes (including penalty) from Cairn India for failing to deduct tax on capital gains made by its British parent. Agarwal's group had bought Cairn India in 2011 and subsequently, the firm was merged with Vedanta.
Vedanta is a diversified natural resources company, whose business primarily involves producing oil and gas, zinc- lead-silver, copper, iron ore, aluminium and commercial power.
