Courtesy-Business Traveller
To recover the amount that is due from the Indian government, after winning an arbitration against the levy of retrospective taxes, Britain’s Cairn energy PLC plans to target the assets of state-owned firms and banks in the countries from the United States to Singapore after Air India.
To make the state-owned firms liable to pay $1.2 billion along with the interest and penalties that are due from the Indian government, a lawyer representing the company stated that Cairn shall bring lawsuits in many countries for the same.
In the United States district court for the Southern District of New York, a lawsuit was been brought by Cairn in the previous month pleading that Air India is controlled by the Indian government to a level where they should be held for the arbitration award.
The levy of taxes on Cairn retrospectively was being overturned by a three-member International arbitration tribunal which consisted of a judge appointed by India in December along with ordering a refund of shares sold, confiscated dividend, and tax refunds withheld to recover such demand.
While on the other hand, the award has not been accepted by the government of India despite participating in the arbitration proceedings for over four years and has filed a setting aside petition in a court in the Netherlands. By confiscating, assets and bank accounts of state-owned entities in foreign nations Cairn is seeking to recover the award.
The arbitration award received by Cairn was already registered and recognized in the United States, the United kingdoms France, Singapore, Canada, and the Netherlands.