Cairn Threatens Action Against India’s Overseas Assets
UK’s Cairn Energy has told New Delhi that it plans to enforce the $1.2bn arbitration award through the seizure of India’s assets overseas, Economic Times reported on January 27.
An arbitration tribunal last month ruled in favour of Cairn in a six-year-old retrospective tax dispute and ordered the Indian government to pay damages of $1.2bn plus interest and costs.
“Now that the award has been granted, our shareholders expect an early resolution, failing which they will expect Cairn to pursue the award in conformity with its right under the treaty,” Cairn wrote in a letter to the Indian high commissioner, reported Economic Times, adding that the letter has also been copied to the Indian prime minister’s office and the ministers for finance and external affairs.
“As India is a signatory to the New York Convention, the award can be enforced against Indian assets in numerous jurisdictions around the world for which the necessary preparations have been put in place,” Cairn said.