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Big jolt to Indian government! Cairn Energy freezes 20 state-owned properties in France: Report
In December, 2020, An arbitration panel had ordered the Indian government to pay USD 1.2 billion-plus interest and penalty to Cairn.
Highlights
- French Court had ordered the takeover on June 11.
- The legal process regarding the takeover was completed on Wednesday (July 7).
- Cairn Energy has now filed cases in several jurisdictions.
New Delhi: In a big jolt to the Indian government, Britain's Cairn Energy Plc has secured a French court order to seize about 20 state-owned government properties in Paris, France. Cairn is aiming to recover a total of USD 1.7 billion in arbitration awards from the Indian government.
The French court had ruled on June 11 that Cairn can take over Indian government-owned properties in France, mostly including flats. The legal process regarding the takeover was completed on Wednesday (July 7).
According to a report by Financial Times, Cairn has identified USD 70 billion in assets around the world. These assets range from buildings to Air India aircraft. If the Indian government refuses to pay up Cairn, then the energy firm is all set to seize more assets.
Meanwhile, in December, an arbitration panel had ordered the Indian government to pay USD 1.2 billion-plus interest and penalty to Cairn in a case involving tax demand. Also Read: Battlegrounds Mobile India tops 1 crore downloads, to organise launch party with Rs 6 lakh prize pool
Since the Indian government decided not to honour the awards, Cairn Energy has now filed cases in several jurisdictions to recover the money from the Indian government, especially by seizing state-owned properties. Also Read: Sensex, Nifty start on choppy note amid weak global cues
- With inputs from PTI.