According to a report published in the Financial Times, Scottish oil producer Cairn Energy said that a French court has allowed them to freeze Indian state-owned assets in Paris to settle an international arbitration order. This comes after India filed an appeal against the tribunal’s decision asking the Indian government to pay Cairn $1.2 billion. “On June 11, a French court ordered Cairn Energy to acquire Government of India properties, mostly flats; And the legal process was completed on Wednesday evening.”
According to the Financial Times, the company said it would effectively transfer ownership of 20 assets of the government, which are valued at more than €20 million. Cairn said the order of the Tribunal Judicier de Paris was “a necessary preliminary step to take ownership of the properties and ensure that the proceeds of any sale will be due to Cairn”, the publication noted.
In December 2020, an international tribunal held that India breached its obligations under the 2014 UK-India Bilateral Investment Treaty by way of collection of taxes. It asked the Indian government to pay a sum of $1.2 billion along with interest to the oil explorer for dividends, tax refunds, and the sale of shares to partially recover dues.
Finance Minister Nirmala Sitharaman earlier said, “Where I receive an arbitration award questioning India’s sovereign right to tax… If there is any question about sovereign right to tax, I will appeal, my duty to appeal.” is.”
After India refused to comply with the arbitration order, Cairn moved courts in the United States, the United Kingdom, the Netherlands, Canada, France, Singapore, Japan, the United Arab Emirates and the Cayman Islands to get the case registered and recognized. did.
In a letter to the Indian government earlier this year, the British energy major indicated that if New Delhi fails to comply with the arbitration award and return the price, it will be liable to pay for bank accounts, state-owned entities, Hawaii. Can confiscate foreign assets such as ships and payments to ships. Number of shares sold, dividend forfeited and tax refund withheld by the Income Tax Department for recovery of part of the tax demanded by using retrospective law.
“Now the arbitration has been finalized and the award has been given. We would request the Government of India along with others to move swiftly to follow up on the award which has been given. it’s important. This is important to our shareholders who are global financial institutions and who want to see a positive investment climate in India,” Cairn Energy CEO Simon Thomson said earlier.
In May, Cairn Energy Plc sued India’s national carrier Air India in the US District Court for the Southern District of New York. According to PTI, the UK-based group 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.
(with inputs from agencies)
read all Breaking Newshandjob today’s fresh news and coronavirus news Here
.