In a major setback to India as Cairn Energy Plc of Britain has managed to secure a French court order to seize about 20 Indian government properties in France to recover a part of USD 1.7 billion arbitration award, sources said today.
On June 11, the French court had ordered Cairn Energy’s take-over of Indian government properties, mostly comprising flat; and the legal process got completed on Wednesday evening.
With Indian government not honouring the award, Cairn Energy has moved in multiple jurisdictions overseas to recover the amount due by seizing Indian government assets.
Air India in the process of being privatised
Cairn has identified Indian assets overseas for potential seizure to collect award, which now totals to USD 1.72 billion after including interest and penalty.
An arbitration panel had in December ordered the Indian government to return USD 1.2 billion plus interest and penalty to Cairn Energy after reversing a retrospective tax demand.
With inputs from agencies