India loses Rs 24,500 crore in international court


News Desk –
India has lost to the International Court of Justice (ICJ) in a Rs 24,500 crore case. Cairn Energy, a British company, has filed a lawsuit against the Indian government in the International Court of Arbitration (ICA) alleging unjustly imposing taxes on old transactions. Last Wednesday, the international media published a report on this. Earlier, India lost to Vodafone in a similar case. There has also been a large loss of money. International trade analysts believe that the defeat against two consecutive big companies in the international arena has tarnished India’s image. Many also think that this will discourage international investors in the country. The Indian government had demanded around Rs 10,200 crore from the old British company Cairn Energy for the old tax. The Income Tax Department issued a notice to the company in this regard in 2014. A year later, in 2015, Cairn sued the International Court of Justice in The Hague, the administrative capital of the Netherlands. After examining all the documents, analyzing the laws and agreements of the Government of India, the tribunal unanimously declared the verdict. The ruling said India’s central government had violated the terms of the UK-India bilateral investment agreement. As a result of this verdict, the Indian government had no way to get the হাজার 24.5 billion claimed by the British company Cairn. On the contrary, the court has imposed a fine of Rs 6,000 crore on India. However, India has said it will appeal. However, it will create a major hurdle for foreign investment in the country. But the Income Tax Department of India has demanded additional tax on the basis of capital gains of 2008. Besides, in some other cases, they also demanded tax. Meanwhile, the amount of money won in the case is equal to the market price of Cairn listed on the London Stock Exchange on December 22. In other words, if the Indian government had won the case, Cairn would have had to pay the equivalent of their entire company or sell the company. That is why the incident has caused a stir in the trade world.