Cairn claims France win

CAIRN ENERGY said last Thursday (8) a Paris court had accepted its petition that Indian state-owned assets in the city worth more than €20 million be frozen.

The company has claimed a significant win in its campaign to force the Indian government to pay Cairn billion-dollar damages in a tax dispute.

A French tribunal ordered the freeze on some 20 properties belonging to the Indian government as part of a guarantee of the amount owed to Cairn, the Londonlisted firm said.

Cairn said it has also registered similar claims against India in courts in the United States, Britain, the Netherlands, Singapore and Quebec.

The Indian government said last Thursday it had not received any communication on the issue from any French court. It would “take appropriate legal remedies” once it received a notice, officials added.

“This is the necessary preparatory step to taking ownership of the properties, and ensures proceeds of any sales would be due to Cairn,” the firm said.

Cairn, which has oil and gas operations in India, was awarded damages of more than $1.2 billion (£869 million), plus interest and costs, in December by the permanent court of arbitration at The Hague. It follows a protracted tussle with India over retrospective tax claims. Cairn says it is owed $1.7bn (£1.23bn) in total.

While New Delhi has filed an appeal against the damages ruling, Cairn has identified Indian assets overseas, including those of national carrier Air India, that the energy firm says could be seized in the absence of a settlement.