Cairn Energy seizes Indian govt property in Paris: Report

[File image: Cairn Energy]

Cairn Energy said it had effectively seized Indian state-owned properties in Paris, in order to recover the arbitration award in the tax dispute with the country's government.

The Edinburgh-based oil producer has secured French court Tribunal Judiciaire de Paris' permission to seize 20 Indian government properties, valued at over GBP 20 million, Financial Times has reported.

"Our strong preference remains an agreed, amicable settlement with the Government of India to draw this matter to a close, and to that end we have submitted a detailed series of proposals to them since February this year. However, in the absence of such a settlement, Cairn Energy must take all necessary legal actions to protect the interests of its international shareholders," a spokesperson for the company told CNBC-TV18.

Also read - Open to 'amicable solution' with Cairn Energy: Finance ministry

The government said it has not received any such order, notice or communication.

"Government is trying to ascertain the facts, and whenever such an order is received, appropriate legal remedies will be taken, in consultation with its counsels, to protect the interests of India," the statement said.

In December 2020, a Permanent Court of Arbitration at The Hague, Netherlands had ruled that the Indian government should pay damages worth $1.2 billion to Cairn Energy, since it had wrongfully applied a retrospective tax demand.

Also read: Explained | Why has Cairn Energy sued Air India?

India has filed an appeal against the tribunal's decision. Meanwhile, Cairn has identified Indian government properties abroad to place pressure and recover their dues.

On May 15, the UK's Cairn Energy Plc sued India's national carrier Air India in the US District Court for the Southern District of New York.

News agency PTI has reported that Cairn has identified $70 billion of Indian assets overseas for potential seizure to collect the amount, which now totals to $1.72 billion after including interest and penalty.