Monday, April 15, 2024

British Company Threatens to Seize Indian Assets to Recover $1.2 Billion

After a $1.2 billion award by an international tribunal in a long-running corporate tax dispute, a British energy company has threatened to seize Indian government properties, local media reported on Friday.

In its decision, the international tribunal claimed that Indian aircraft and ships could be confiscated after breaching a 2014 agreement. India will also be bound to pay expenses and interest on the sum in addition to the original amount.

In the case of non-payment, the British firm threatened that it would begin plans to seize Indian properties.

The battle between Cairn and the Indian authorities stems from a law in 2012 that retrospectively changed the country’s tax regime. Tax authorities cited the new legislation in 2014 to demand unpaid dues arising from the 2006 corporate reorganization of Cairn India.

This isn’t the first time that international agreements have been broken by India. Vodafone Group Plc won an arbitration case on similar grounds against the Indian government in September 2020.

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