India looses Cairn arbitration proceedings, asked to pay $1.2 billion

India has been ordered to return over $1.2 billion to Cairn Energy Plc after the Government lost arbitration proceedings in a tax dispute. The U.K. oil explorer received the tax claim from Indian authorities in March 2015 over a restructuring carried out in 2006. The tax authorities had seized 10% of Cairn India’s shares, then valued at about $1 billion. This is a second loss for India in an international arbitration after Vodafone Group Plc won a year long tax dispute in September.