Cairn dispute: French court orders freeze on Indian assets in Paris; government says open to finding solution

NEW DELHI: A French court has ordered a freeze on residential real estate owned by the Indian government in central Paris, in what is seen as an embarrassment for the Centre in its decade long tax dispute with Cairn Energy Plc.

Tribunal judiciaire de Paris’ ruling based on Cairn Energy’s application will impact some 20 properties, valued at more than Euros 20 million, as part of a guarantee of the debt owed to the British company that exited India a few years ago.

“This is the necessary preparatory step to taking ownership of the properties and ensures that the proceeds of any sales would be due to Cairn,” said a source familiar with the proceedings.