India Asked to Pay $1.2 Billion to Cairn After Arbitration (2)

India has been ordered to return over $1.2 billion to Cairn Energy Plc after Prime Minister Narendra Modi’s administration lost arbitration proceedings in a tax dispute, its second defeat since September over such levies.

An international arbitration tribunal ruled that India’s tax claim was not valid and asked the government to repay the funds, along with interest, to Cairn. India had seized dividend, tax refund and shares to partly recover the dues. The judges unanimously ruled that India’s retrospective tax demand breached the U.K.-India bilateral investment protection treaty, Cairn said in a statement Wednesday. India can appeal.

Cairn Energy ...