Govt vs Cairn Energy: Here's what has happened so far

(File image: Cairn Energy)

The legal tussle between Cairn Energy and the Indian government escalated on July 8, after a French court gave the Scottish oil producer permission to freeze the latter's properties in Paris.

The court's order was a part of an effort by Cairn to recover their dues in connection with retrospective tax dispute with the government.

The Ministry of Finance said it has not received any such order, notice or communication. It said "appropriate legal remedies" will be after receiving such a communication.

"It is also stated that the CEO and the representatives of Cairns have approached the Government of India for discussions to resolve the matter. Constructive discussions have been held and the government remains open for an amicable solution to the dispute within the country's legal framework," the Centre said.

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

Here's what has happened so far:

> December 2020: The 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.

> March 2021: The government files an appeal against the Dutch tribunal's decision.

> April-June 2021: Media reports emerge that Cairn has identified the Indian government's properties abroad for potential seizure.

Also read: Jyotiraditya Scindia takes over a debt-laden national airline and an industry struggling with traffic

On May 15, the company sued India's national carrier Air India in the US District Court for the Southern District of New York, Reuters reported. The move is a part of the plan to recover the amount.

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

> July 2021: Cairn 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.

Moneycontrol reported that as part of the discussions with Cairn Energy's management, India had offered the company a settlement under the Vivaad Se Vishwas scheme, but that offer was rejected.