Cairn Energy’s takeover of properties, mostly comprises flats. The move is part of a USD 1.7 billion arbitration award, according to the June 11 French court order.
After an international arbitration panel ruled in its favour against India’s retrospective tax demand, in its first action initiated, the oil major Britain’s Cairn Energy has secured a French court order to take over 20 Indian government-owned properties in Paris.
Cairn Energy’s takeover of properties, mostly comprises flats. The move is part of a USD 1.7 billion arbitration award, according to the June 11 French court order.
Cairn identified $70 billion worth Indian government-owned assets around the globe that it would try to seize as the arbitration award was not honoured. The oil major said it would effectively transfer the ownership of the 20 properties, valued at 20 million Euros.
The move is part of a USD 1.7 billion arbitration award, according to the June 11 French court order.
Cairn Energy is not the only company that has secured a favourable order against India’s retrospective tax demand. Vodafone had also secured a similar order in its favour. However, the Indian government has challenged both the verdicts against it.
A Dutch arbitration tribunal ruled that India had violated its obligations under the UK-India Bilateral Investment Treaty in 2014 when tax officials seized Cairn Energy’s residual 10 per cent stake in the subsidiary, which it had sold to Vedanta.
Under the retrospective tax law, passed in 2012, India demanded $1.4 billion in tax payments from Cairn Energy in connection with the UK group’s floatation of its Indian subsidiary on the Bombay Stock Exchange in 2007.