Cairn Energy seizes Indian govt properties in France as $1.7 billion tax dispute escalates
Scottish energy giant Cairn Energy has seized properties owned by the Indian government in Paris, the Financial Times reported on Thursday. The oil producer and the Indian government have been at loggerheads for months after an arbitration tribunal ruled in favour of Cairn and asked the Indian government to pay $1.7 billion over a tax dispute. A three-member international arbitration tribunal, last year, had unanimously overturned levy of taxes on Cairn retrospectively and ordered refund of shares sold, dividends confiscated and tax refunds withheld to recover such demand.
FT reported that Cairn Energy would transfer ownership of 20 properties valued at over €20 million. A French court had authorised the freeze, according to the report. However, official sources have denied the claim. “There have been news reports that Cairn Energy has seized State-owned property of Government of India in Paris. However, the government of India has not received any notice, order or communication, in this regard, from any French Court,” they said. Officials said that the Indian government is trying to ascertain the facts of the matter, and plans to take appropriate legal remedies whenever such an order is received.
