India Takes Legal Recourse Over Cairn Energy

 - Sakshi Post

In France, a court has approved the foreclosure of Indian assets.

India is considering legal action in response to Cairn Energy's seizure of its assets in Paris

New Delhi: Cairn India, a British energy company, has been dealt a blow in its Retrospective tax fight. Cairn Energy has been granted permission by a French court to take 20 Indian government assets in Paris in order to obtain compensation. These assets, primarily in the form of flats, are being used by the Indian government for its operations in France.

Their net worth is believed to be in the range of 20 million Euros. Despite the fact that Cairn is unlikely to remove Indian officials from their respective properties under the guise of court decisions in their favour, the Indian government will not sell them. The Ministry of Finance, on the other hand, stated that they have not yet received any instructions from the French court and that they would take legal action as soon as they do.

Going into details, in 1994 Cairn Energy made an investment in India's oil and gas industry. Its Indian division was listed on the BSE in 2006. Cairn Energy was served with notifications to pay a tax penalty of Rs 10,247 Crore, as well as interest on profits generated via the restructuring of operations. Issued in line with the new tax legislation (retrospective tax), which also apply to previous transactions. Cairn shares in the Indian sector have been confiscated, including dividends payable.

Cairn Energy appealed in numerous courts as well as the International Arbitration Tribunal, which decided in its favour.

India has been ordered to pay Cairn $ 1.72 billion in damages by the Arbitration Tribunal. However, because the Centre is reluctant to do so, Cairn intends to seek remedy by seizing India's assets overseas. In order to achieve this, applications have been filed in the United States, France, and other countries, requesting that the Arbitration Panel's orders be implemented.

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