The Oil Ministry has refuted UK Prime Minister David Cameron's allegations that "unexpected regulatory hurdles" were delaying the USD 9.6 billion Cairn- Vedanta deal, and said the British firm was responsible for the deferment.

"Cairn Energy - which has agreed to sell a majority share in its Indian subsidiary to Vedanta, faces unexpected regulatory hurdles which are causing delay and could block the deal entirely (which is very time-sensitive) - thus preventing Cairn investors from legitimately exiting the market," Cameron wrote to Prime Minister Manmohan Singh recently.

In response, the oil ministry has told the Prime Minister's Office that Cairn Energy took more than three months to comply with regulation of seeking formal approval for selling most of its stake in Cairn India to Vedanta.

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