The case of Cairn Energy is becoming increasingly complicated. Now in this case, the Government of India is being threatened to seize foreign assets.
The government will soon challenge the arbitration court’s decision in the Cairn Energy case to reaffirm its sovereign rights to tax. Cairn Energy CEO Simon Thomson met senior finance ministry officials a day earlier and requested to implement the $ 1.2 billion arbitration decision soon.
‘Cairn disputes to be settled under existing law’
Sources said that the government will also strongly challenge the petitions filed by Cairn Energy in different international courts. Cairn has filed a petition in the United States, Britain and the Netherlands to implement the order that came on December 21 last year. Meanwhile, the government has welcomed Cairn’s move to negotiate to settle the matter. But whatever dispute Cairn asks to settle, they will be dealt with under the already existing laws. Cairn made deals with such places to save tax, which are suitable for saving tax. India has till March 21 to appeal against the arbitration decision.
Government of India threatens to seize assets
The company said in a letter sent to the Center last month that if India does not give the money as per the decision, then the assets of the Government of India will be confiscated. A lower court in Denmark has ordered Cairn to enforce the ruling. After this, this UK company can identify such commercial assets of India which can be confiscated.
In fact, this case is related to Cairn earning capital gains through its Indian unit in 2006-07 and asking the government for tax of Rs 24,500 crore on it. It includes the return of dividend and the return of tax collected by the government, as well as the return of those shares, which were sold by the tax department to collect tax. During the hearing in the arbitration court, India argued that the case of non-compliance of tax does not come under the purview of international treaties.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.