UK-based Cairn Energy has now threatened to seize the government assets of India if it still fails to pay the damages the Permanent Court of Arbitration at The Hague awarded to the firm.
Following the tax dispute on the charge that India violated the UK-India bilateral investment treaty in 2014, the firm has now submitted a letter to India’s government urging the latter to honor the tribunal’s ruling.
India was compelled to pay Cairn $1.2 billion plus other costs as damages after tax officials claimed 10 percent of Cairn’s stakes in retrospective taxes, in its Indian branch.
In the letter Cairn said, “The award can be enforced against Indian assets in numerous jurisdictions around the world for which the necessary preparations have been put in place.”
Prime Minister Narendra Modi’s government has yet to respond but officials on December earlier said that it would decide on a course of action, following the tribunal’s ruling.
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