While India has been reshaping its arbitration laws and investment climate, the jury is still out on whether these measures will actually help create a more secure legal environment for investors.
India will not renew an investment treaty with the Netherlands that will expire on November 30 as part of its plan to rework all similar pacts it signed with other countries.
Cairn had in June filed a 160-page Statement of Claim seeking quashing of the retrospective tax demand on a decade-old on an internal reorganisation of its India unit.
Global MNCs like Cairn Energy and Vodafone have invoked Bilateral Investment Treaty and served arbitration notice to India over tax disputes. While the tax demand on Cairn Energy is Rs 10,247 crore, that on Vodafone is Rs 14,200 crore.
Global law firm has won an arbitration award for Indian investor Flemingo DutyFree in a case brought against Poland under the India-Poland Bilateral Investment Treaty (BIT)
Any intra-Brics framework will only be effective if awards rendered by such a body are enforceable without the added difficulty of getting entangled in domestic proceedings.