Economy News

Cairn demands 1.2 billion arbitration award from the Indian government

Cairn Energy, an arbitration body in Britain has reportedly filed a case in a U.S district compelling Indian government to pay $ 1.2 billion award.

This is related to a tax dispute it had previously won against India.

An arbitration body had granted a compensation to the British firm for the damages caused amounting to $1.2 billion plus interest and cost in December.

Moreover, India had allegedly breached an investment treaty with Britain according to the tribunal and was therefore liable to pay.

Further, the British firm demanded that the US court recognise and confirm the award.

This however includes payments due since 2014 and interest compounded semi-annually.

In fact, for recovery of it’s dues, Cairn was set to seize Indian assets if the government refused to pay what it’s liable for.

In case the British firm manages to win the case against the Indian government, it will result in attaching and seizing the Indian assets overseas.

Last month it was reported that the British firm was extensively looking to seize India’s overseas assets such as bank accounts and even Air India planes or Indian ships.

Also, Chief Executive Simon Thomson was looking forward to meet India’s Finance Minister in Delhi next week as per a Feb 9 tweet.

Thomas claimed that the Indian government is requested to adhere to the award that has been given by moving swiftly.


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