The Income Tax Department of India has asked Cairn Energy plc (LSE:CNE) not to dispose of its 10.3% holding in Cairn India Limited (BSE:532792). Cairn Energy said in a statement, "Cairn (Energy) has been contacted by the Income Tax Department of India to discuss income-tax assessments for the year ending March 31, 2007. Cairn is cooperating 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."