New Delhi: India has suffered a major setback. Cairn Energy has received an order from a French court to confiscate 20 Indian government properties. Cairn Energy said it has effectively forfeited Indian state-owned properties in Paris to recover the arbitration award in a tax dispute with the country’s government. The Financial Times reported that the Edinburgh-based oil producer has received a French court order to confiscate 20 Indian government assets worth more than GBP 20 million.
Know what is in the report?
The report said Cairn stated that the order of the Tribunal Judiciary de Paris was “an essential preliminary step to take ownership of the properties and ensure that the proceeds of any sale will accrue to Cairn.” In December 2020, a Permanent Court of Arbitration in The Hague, Netherlands, ruled that the Indian government should pay $1.2 billion in damages to Cairn Energy for unfairly applying the tax demand.
Know what is the matter?
India has filed an appeal against the decision of the Tribunal. Meanwhile, Cairn has identified Indian government assets overseas to pressurize and recover its dues. On 15 May, UK’s Cairn Energy Plc filed an appeal against India’s national carrier Air India in the US District Court for the Southern District of New York. News agency PTI has reported that Cairn has identified $70 billion of Indian assets abroad for possible confiscation to collect the amount, which now totals $1.72 billion, including interest and fines.
