Cairn EnergyIn an attempt to make India pay $1.7 billion, a tribunal in The Hague claimed that they had seized Parisian state-owned property in India.Financial TimesReports
The first successful application was made in France. The company stated that it was a necessary preparatory step towards taking over the properties. It also ensures that Cairn receives any proceeds from any sales.
The freezing of the assets has been authorized by theTribunal Judiciaire de ParisThe company, which is based in Edinburgh, could receive ownership of 20 properties worth more than EUR20million.
After the 2012 passage of a tax law, India sought $1.4bn in retroactive payments from Cairn for India’s 2017 flotation on the UK group’s subsidiary.Bombay Stock Exchange.
The tribunal at The Hague determined Cairn’s remaining 10% stake in the subsidiary was taken by tax officials and then sold to them.VedantaIndia had breached its obligations under the bilateral investment treaty between India and the UK in 2014.
India’sFinance MinistryIt stated that it had not been notified by the French court, but said that it was trying to determine the facts and would initiate legal action to “protect India’s interests”.
Tim PortwoodFrench law firmBredin PratAccording to, India will almost certainly be entitled to sovereign immunity over assets used for sovereign purposes.
He said, “If they’re being rational about this on Cairn’s side, they would look for assets worldwide to determine what it is they can seize.”
Cairn’s lawyer is, however.Isabelle MichouOfQuinn Emanuel Urquhart & SullivanParis: “None of the properties that are subject to the Paris court orders is protected by sovereign immunity.” These properties do not have diplomatic functions, but are merely subject to private law management of real-estate investment.