British energy company Cairn Energy has filed a lawsuit in the US court against the Indian government for repaying $ 1.4 billion. In fact, India had to face defeat at the hands of Cairn Energy in international arbitration in December 2020 over retrospective tax. In this case of Tax Dispute, the court of arbitration ordered the Government of India to repay the interest and penalty in addition to $ 1.2 billion, which increased the amount to more than $ 1.4 billion. But the Government of India has not paid this amount to Cairn Energy.
The tribunal ruled that India had violated the trade agreement with Britain. Court Cairn’s India tax claim of Rs 10,247 crore on the internal reorganization of business in India in 2006-07 is not correct. The tribunal ordered the government to hold back the refund of the shares sold, forfeit the dividend and the withheld tax refund for recovery of tax demand. In this case, Cairn India has now asked the US court to help the company in getting interest on the Indian government with the remaining $ 1.2 billion from 2014.
Indian government threatens to seize assets abroad
Cairn Energy has taken this step with the intention of pressuring the Government of India for payment. Let us tell you that the company had written a letter to the government last month and said that if its money is not received soon, it will be forced to seize assets of the Indian government abroad. Cairn Energy has told the Government of India that if India does not accept the court’s order, then the company can take possession of the assets of the Government of India located abroad. According to sources, Cairn Energy has also started assessing which assets it can seize. The company plans to seize Air India’s plane and ship.