'Haven't Received Any Notice': Finance Ministry On Cairn Energy Seizing 20 Indian Govt Properties In France

About 20 government properties in Paris were reportedly seized/frozen by Cairn Energy in its bid to recover a part of the USD 1.7 billion dues.

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New Delhi: Indian government on Thursday issued a statement regarding an ongoing tussle involving Britain's Cairn Energy after it was reported that the firm has secured a court order to seize several Indian government properties in Paris to recover a part of the USD 1.7 billion dues.

Around 20 government properties in Paris were said to have been seized.

In its statement, the Indian government has informed that it has not received any court order or notice in this regard.

"There have been news reports that Cairn Energy has seized/frozen State-owned property of Government of India in Paris. However, Govt. of India has not received any notice, order or communication, in this regard, from any French Court," the Finance Ministry's statement read.

The Government added that it is trying to ascertain the facts, and whenever such an order is received, appropriate legal remedies will be taken, in consultation with Counsels to protect India's interests.

"Government has already filed an application on March 22, 2021 to set aside the December 2020 international arbitral award in The Hague Court of Appeal. Government of India will vigorously defend its case in Set Aside proceedings at The Hague," the statement informed.

About 20 government properties in Paris, which were reportedly seized/frozen by Cairn Energy in its bid to recover a part of the USD 1.7 billion dues, mostly comprise of flats, valued at more than EUR 20 million. They were used by the Indian government establishment in France, three people with direct knowledge of the matter said as reported by news agency PTI.

This came after the three-member international arbitration in December ordered the Indian government to return USD 1.2 billion-plus interest and penalty to Cairn Energy after overturning a retrospective tax demand.

As the Indian government refused to honour the award, Cairn approached multiple overseas jurisdictions to enforce the award by seizing Indian assets.

It further reported that while Cairn is unlikely to evict the Indian officials residing in those properties, the government will not be in the position to sell them after the court order.

Meanwhile, the Indian Government confirmed that the CEO and the representatives of Cairns approached it for discussions to resolve the matter. "Constructive discussions have been held and the Government remains open for an amicable solution to the dispute within the country’s legal framework," it informed.