French justice authorizes the British Cairn Energy to seize 20 Indian assets in Paris: the Tribune India
New Delhi, July 8
A French court has reportedly authorized British firm Cairn Energy to seize 20 properties from the Indian government in Paris to recover an arbitration award of $ 1.7 billion (more than 12,600 crore rupees), even as the finance ministry said that he had received no notice in this regard and was trying to ascertain the facts.
The French court had accepted a request from Cairn to seize residential real estate held by India in central Paris. Legal formalities were completed on Wednesday, French media reported.
The Ministry of Finance suggested that a dialogue was underway with representatives of the company. “Constructive discussions have taken place and the government remains open to an amicable solution to the dispute within the country’s legal framework,” said a statement from the ministry.
Rage on the tax
In January 2014, Cairn received a tax claim notice of Rs 10,247 crore following the reorganization of the group in 2006
The government claimed that Cairn realized a capital gain of Rs24,503 crore in the process
Cairn launched international arbitration to challenge retrospective taxation
He received Rs8,800 cr plus government damages costs
The centrally located properties mainly include apartments worth more than 20 million euros used to accommodate VIPs visiting France, according to French media. “Whenever such an order is received, appropriate legal remedies will be taken in consultation with our lawyers,” the statement said.
Cairn had received a notice from the Income Tax Department in January 2014, raising a preliminary assessment of Rs 10,247 crore in taxes payable for the group reorganization he carried out in 2006.
In March 2015, the IT department claimed that Cairn had realized a capital gain of Rs 24,503 crore. Cairn challenged that decision in an arbitral tribunal in The Hague, which awarded him $ 1.2 billion plus costs and interest, for a total of $ 1.7 billion. – TNS