British firm threatens to seize Indian govt's assets to recover $1.2 billion

(Karachi) A British energy firm has threatened to seize Indian government assets after a $1.2 billion award by an international tribunal in a long-running corporate tax case, local media reported on Friday.

As per details, the international tribunal has given a verdict in favour of the British firm, Cairn Energy, directing the country to pay $1.2 billion. Cairn Energy has started collecting details regarding the Indian assets to retrieve the payable amount.

The international tribunal, in its decision, stated that the Indian planes and ships could be seized after it violated a 2014 agreement. Besides the original amount, India would also be bound to pay expenditures and interest on the amount.

The British firm threatened that it would start preparations to seize Indian assets in case of non-payment.

Cairn’s battle with Indian authorities stems from a 2012 law that changed the country’s tax regime retrospectively. In 2014 tax authorities cited the new law to claim unpaid dues stemming from Cairn India’s 2006 corporate reorganisation.

This is not the first time that India has violated international agreements. In September 2020, Vodafone Group Plc won an arbitration case against the Indian government on similar grounds.

Similarly, another case is due in The Hague in a long-running dispute between India’s space agency ISRO and a commercial entity Devas – where a final decision is awaited.