Wednesday, August 17, 2022

British firm threatens to seize Indian assets to recover US$1.2 bn

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A UK based Energy Firm-Cairn Energy- has threatened to seize Indian government assets after a US$1.2bn award by an international tribunal in a long-running corporate tax case, ARY NEWS reported.

According to the reports in British media, the international tribunal has given a verdict in favour of the British firm, directing the country to pay US$1.2bn.

Cairn Energy has started collecting details regarding the Indian assets to retrieve the payable amount. According to the tribunal’s decision, the Indian planes and ships could be seized after it was found violating a 2014 agreement.

Besides the original amount, the country would also be bound to pay expenditures and interest on the amount.

The BJP-led Narendra Modi government has kept mum over the humiliating situation despite a letter written from the British firm for the payment soon after the tribunal’s directive.

The firm further conveyed that they would prepare to seize Indian assets in case of non-payment.

It is worth mentioning here that Cairn’s battle with Indian authorities stems from a 2012 law that changed the country’s tax regime retrospectively. In 2014 tax authorities cited the new law to claim unpaid dues stemming from Cairn India’s 2006 corporate reorganisation.

This is not the first time that India has faced the situation as according to BBC, in September 2020, Vodafone Group Plc won an arbitration case against the Indian government on similar grounds.

And a third case still, is due in The Hague in a long-running dispute between India’s space agency ISRO and a commercial entity Devas – where a final decision is awaited.

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