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India: Cairn India, Vedanta merger will happen only after tax liability settled

By  |  April 11, 2016
India: Cairn India, Vedanta merger will happen only after tax liability settled

In a setback to mining mogul Anil Agarwal, the government today said it will not allow him to merge subsidiary Cairn India with his flagship firm Vedanta Ltd unless the Rs 10,247 crore tax issue is settled.

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    “Cairn-Vedanta merger cannot be allowed unless the tax liability is settled,” a top government official said here.

    Agarwal’s Vedanta Group had in 2011 acquired Cairn India from its British promoters, Cairn Energy plc, and last year proposed to merge the cash-rich firm with BSE-listed Vedanta Ltd. However, a tax demand on both Cairn Energy plc and Cairn India under a retrospective legislation is now hindering the merger.

    “Cairn will have to first to settle the tax liability,” the official told reporters here.

    Full content: Economic Times

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