The seeds of controversy were sown with Kern Energy after its largest I.P.O.

Capital Gains Tax Rs 10,200 crore Income Tax Account Demand Notice is the root of the dispute with Kern Energy

New York: U.K. Kern Energy is one of Europe's leading oil and gas exploration companies. Kern Energy has spread its empire in a number of countries around the world, including India. Kern Energy Bluechip has been listed on the London Stock Exchange for the past 30 years.

Kern Energy started oil-gas exploration operations in India in the nineties. In 2004, Kern Energy India discovered a large quantity of oil from the Mangala oil field in Rajasthan. In the last decade, Kern Energy has generated revenue of Rs 150,000 crore in India ...!

Following its great success in India, Kern Energy expanded its operations here to Kern India Lee. An IPO was launched in 2006 to set up a new separate company called Began preparations to bring. It was the largest public issue in the history of the Indian stock exchange at that time; It was listed on the Mumbai Stock Exchange in January 2007.

The IPO is the root cause of the current controversy over the payment of billions of rupees to Kern Energy with the Government of India. Were planted just in time. The Income-tax department, which is restructuring the assets of Kern Energy in its India-based company Kern India, had issued a demand notice to Kern Energy for a total of Rs 10,200 crore, including capital gains tax plus interest and penalty.

But Kern Energy wrote to the Government of India in its reply that asset restructuring does not incur capital gains tax. We have restructured the assets within the framework of the existing law. The issue was the subject of a court case between Kern Energy and the Government of India and the matter reached as far as international arbitration.

The Hague-based International Arbitration Court ruled in favor of Kern Energy last year, ordering the Indian government to pay a total of 1. 1.2 billion in damages, interest and costs. The Indian government has also filed an appeal in the Netherlands against this.

Finance Minister Sitharaman says that the sovereign power to levy taxes in our country belongs to the Government of India. It is my "duty" to appeal against this authority when there is a challenge or question. Against this, the International Arbitration Court has clarified that in the judgment we have given, we have not challenged the 2012 law of India.

India's 2012 law empowers the government to calculate taxes with retrospective effect. We have also not challenged the sovereign right of the Government of India to levy taxes. Kern Energy has filed lawsuits against the Government of India in the United States, England, the Netherlands, Canada, France, Singapore, Japan, and the UAE. And have filed cases in the courts of the Cayman Islands.