UK Energy Major Cairn Gets French Court's Nod To Takeover Indian Assets In Paris To Recover Arbitration Award: Report

UK's Cairn Energy has secured a French court order to seize about 20 Indian government properties in Paris to recover a portion of $1.2 billion from India on the backdrop of the arbitration victory of the company, sources privy to the development said.

According to the people in the know and reports, French courts completed the legal process on Indian asset takeover on Wednesday that started last month when it had ordered the takeover in favour of the energy company.

The British energy major has said that it may file lawsuits across several countries to make government firms and banks liable to pay the dues.

The company is targeting assets abroad of more state-run companies in a bid to recover dues from the government.

Cairn Energy already moved courts in the US, UK, Canada, France, Singapore, the Netherlands and three other countries to register the December 2020 arbitration tribunal ruling that overturned the Indian government's Rs 10,247 crore demand in back taxes and ordered New Delhi to return $1.2 billion in value of shares it had sold, dividends seized and tax refunds withheld to recover the tax demand.

After reports of identification of Indian assets overseas worth $70 billion by Cairn for potential seizure came out, government sources said that the Centre is well aware of its legal rights and will defend its case in courts if such proceedings materialise.

Official sources said that the government is confident of winning its appeal in The Hague.

Sources further pointed out that Cairn did not pay a single rupee tax anywhere in the world in respect of the impugned transactions. Cairn had also lost its appeal before the income-tax tribunal.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)