Centre aims to settle Cairn Energy retrospective tax case with $1 billion refund: Report

India could also drop $13.5 billion in outstanding claims against multinationals such as telecoms group Vodafone, pharmaceuticals company Sanofi and brewer SABMiller, now owned by AB InBev, as part of efforts to repair its damaged reputation as an investment destination. 

New Delhi: India expects to refund $1 billion to UK-based Cairn Energy after it moved to scrap a retrospective tax law that unleashed bitter fights with prominent foreign investors, Financial Times reported. The lower house of parliament on Friday approved a draft law introduced the previous day, cancelling a 2012 policy that enabled New Delhi to tax some foreign investments retrospectively. The upper house is expected to approve the law as early as next week. India could also drop $13.5 billion in outstanding claims against multinationals such as telecoms group Vodafone, pharmaceuticals company Sanofi and brewer SABMiller, now owned by AB InBev, as part of efforts to repair its damaged reputation as an investment destination, the report said. Analysts say the legal initiative would allow New Delhi to resolve a bitter international tax battle with Cairn that has grown increasingly embarrassing for India. The UK energy group has sought in recent months to seize some of the government`s estimated $70bn worth of overseas assets.