Business & Investment

British Cairn filed proceedings in the U.S., urging India to pay $ 1.2 billion in prize money

Has filed a proceeding in the US District Court to enforce a $ 1.2 billion arbitral award earned in a tax dispute against India, and court documents have shown pressure on the government to pay membership fees. In December, the arbitration body paid interest and expenses to British companies in addition to more than $ 1.2 billion in damages. The referee ruled that India had violated an investment agreement with Britain and said New Delhi was obliged to pay. Cairn approves and confirms the award with a U.S. court, including payments to be paid after 2014 and compounded interest every six months, according to a February 12 filing confirmed by Reuters. I asked. A source familiar with the arbitration case told Reuters that the case was the first step in Cairn’s efforts to recover membership fees by seizing Indian assets if the government did not pay. ..

“If Cairn wins the proceedings, it will be a step towards attaching and seizing Indian assets abroad, especially in the United States,” sources said. Reuters reported last month that Cairn has identified foreign assets in India that could be seized without a settlement, such as bank accounts, Air India planes and Indian ships.

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Cairn declined to comment, but said in a Twitter post on February 9 that CEO Simon Thomson is looking forward to seeing India’s Finance Minister in Delhi next week.

“We demand that the Government of India act swiftly with others to defend the awards given,” Thomson said in a video posted by Cairn on Twitter.

“It’s important for shareholders who are global financial institutions and want to see a positive investment climate in India. We are confident that working with the government will help us quickly conclude this and reassure investors. “I do,” he said.

The Treasury and Foreign Ministry did not immediately respond to requests for comment.

Cairn enforces arbitral awards under international arbitration rules, commonly referred to as the New York Convention, with the aim of recovering the losses caused by India’s “unfair and unfair treatment of investment.”

The company has registered claims against India in the Netherlands and France, telling regulators in both countries that it may face court orders seeking seizure of some Indian assets, the same in Canada and the United States, according to Reuters. He reported that he was preparing to do that. last month.

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British Cairn filed proceedings in the U.S., urging India to pay $ 1.2 billion in prize money

https://www.business-standard.com/article/companies/britain-s-cairn-files-case-in-us-to-push-india-to-pay-1-2-billion-award-121021601133_1.html British Cairn filed proceedings in the U.S., urging India to pay $ 1.2 billion in prize money

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