Miner Vedanta to file notice of claim in Cairn India tax dispute

(Reuters) - Vedanta Resources Plc said it would file a notice of claim related to a tax demand of about 205 billion Indian rupees (2.21 billion pounds) 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 Indian government, led by Prime Minister Narendra Modi, 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. (Reporting by Mamidipudi Soumithri in Bengaluru and Aman Shah in Mumbai; Editing by Kirti Pandey)