REUTERS - Vedanta Resources Plc said it would file a notice of claim related to a tax demand of about 205 billion rupees ($3.29 billion) its unit Cairn India Ltd received from the Indian government this month.
The notice is the first step required before seeking international arbitration under the UK-India bilateral investment treaty, Vedanta said on Friday.
London-listed Vedanta has most of its operations in India.
Cairn Energy Plc, which sold its stake in Cairn India to Vedanta in 2011, also filed a notice of dispute under the treaty this week after receiving a tax demand of more than $1.6 billion.
Cairn India received the retrospective tax demand in relation to its 2007 listing in India.
The tax demands come at a time the Narendra Modi government is seeking to reduce tax-related litigation and boost much-needed foreign investment.
Vedanta's shares were down 1.6 percent at 531.50 pence at 1402 GMT on the London Stock Exchange.
($1 = 62.51 rupees)
(Reporting by Mamidipudi Soumithri in Bengaluru and Aman Shah in Mumbai; Editing by Kirti Pandey)
