InvestorQ : What is the massive tax demand notice that the government has slapped on Cairn Energy of the Vedanta Group?
Archita Jajjoo made post

What is the massive tax demand notice that the government has slapped on Cairn Energy of the Vedanta Group?

Answer
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Rashi Mehra answered.
4 months ago


Government of India has slapped a $520 million (Rs.3941 crore) demand notice on Cairn Energy after an audit found discrepancies in cost recovery in the Rajasthan oil and gas fields. Cairn is currently owned by Anil Agarwal’s Vedanta group. The Directorate General of Hydrocarbons (DGH) has sought $520 million in additional profit for the government after an audit of capital and operating expenses incurred on the Mangala and other oilfields in the Rajasthan block. The audit alleged discrepancies in the way capital expenses made on setting up the infrastructure to produce oil were booked. Booking a higher expenditure curtails government's profit share.