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Cairn Vitality recordsdata case in US to push India to pay $1.2 billion award – Occasions of India

NEW DELHI: Britain’s Cairn Vitality has filed a case in a US district courtroom to implement a $1.2 billion arbitration award it received in a tax dispute in opposition to India, a courtroom doc confirmed, ratcheting up stress on the federal government to pay its dues.
In December, an arbitration physique awarded the British agency damages of greater than $1.2 billion plus curiosity and prices. The tribunal dominated India breached an funding treaty with Britain and mentioned New Delhi was liable to pay.
Cairn requested the US courtroom to recognise and make sure the award, together with funds due since 2014 and curiosity compounded semi-annually, based on the February 12 submitting seen by Reuters.
The case marked a primary step in Cairn’s efforts in direction of recovering its dues, probably by seizing Indian property, if the federal government didn’t pay, a supply with data of the arbitration case informed Reuters.
“If Cairn wins the case, it will be a step towards attaching and seizing assets overseas, especially in the US,” the supply mentioned.
Reuters reported final month that Cairn was figuring out India’s abroad property, together with financial institution accounts and even Air India planes or Indian ships, that might be seized within the absence of a settlement.
Cairn declined to remark however pointed to a February 9 Twitter submit the place it mentioned chief government Simon Thomson was trying ahead to assembly finance minister Nirmala Sitharaman in Delhi subsequent week.

“We would request, along with others, that the government move swiftly to adhere to the award that has been given,” Thomson mentioned within the video posted on Twitter by Cairn.
“It is important for our shareholders who are global financial institutions and who want to see a positive investment climate in India. I am sure that in working together with the government we can swiftly draw this to conclusion and reassure those investors,” he mentioned.

The finance and exterior affairs ministries didn’t instantly reply to requests for remark.
Cairn goals to implement the award beneath worldwide arbitration guidelines, generally known as the New York Conference, and get better losses attributable to India’s “unfair and inequitable treatment of their investments”, the courtroom submitting confirmed.
The corporate has registered its declare in opposition to India within the Netherlands and France, telling regulators within the two international locations that they could obtain courtroom orders to grab a few of Indian property, and the agency was getting ready to do the identical in Canada and United States, Reuters reported final month.
India misplaced one other main worldwide arbitration case final yr in opposition to Vodafone over a $2 billion retrospective tax dispute.
The federal government has challenged the arbitration verdict within the Vodafone case. It has but to say the way it will proceed in Cairn’s case the place it has to make a major fee.

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