Scots oil explorers Cairn Energy faces an tax probe in India after shares in its subsidiary firm were suspended.
Indian tax inspectors have opened talks with the Edinburgh-based North Sea firm over results from its 2006-2007 year.
“Cairn has been contacted by the Income Tax Department of India to discuss income tax assessments for the year ending 31 March 2007,” the company said in a statement.
“Cairn is co-operating to provide the necessary documentation and information as requested.
“While discussions are ongoing, the Income Tax Department has instructed Cairn Energy PLC to hold its shares in Cairn India.”
Earlier this week, Cairn India revealed this week it had posted record revenues of £484million for the third quarter of last year, with production up 5%.
Profits fell 15% year on year for the quarter, although nine-month profits to the end of 2013 were largely stable.
The company, one of the largest independent oil and gas firms on the subcontinent, operates more than a quarter of India’s entire domestic crude output.
It currently has nine blocks, two on India’s west coast and four on the east coast, along with one on the giant onshore discovery at Rajasthan. It also has blocks in Sri Lanka and South Africa.