British oil and gas exploration company Cairn Energy has filed a case in a United States district court to enforce a $1.2 billion (over Rs...
British oil and gas exploration company Cairn Energy has filed a case in a United States district court to enforce a $1.2 billion (over Rs 8,754 crore) arbitration award it won in a tax dispute case against the Indian government in December last year, Reuters reported on Tuesday.
Cairn aims to enforce the award under international arbitration rules, commonly called the New York Convention, and recover losses caused by India’s “unfair and inequitable treatment of their investments”, a court filing accessed by Reuters stated.
Cairn has asked the court to recognise and confirm the award in a bid to build pressure on the Indian government to pay the dues, according to Reuters. “If Cairn wins the case, it will be a step towards attaching and seizing Indian assets overseas, especially in the US,” an unidentified source told the news agency. The gas company was reportedly identifying India’s overseas assets, including bank accounts and even Air India planes or Indian ships, that could be seized in the absence of a settlement.
The case
In December, the international arbitration tribunal in The Hague had ruled that India’s demand of Rs 10,247 crore from Cairn in past taxes was not valid. The retrospective tax demand was on alleged short-term capital gains that the company...
