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India about to join countries threatened by asset seizures across the world Cairn Energy Plc will push authorities to impound Indian assets if the South Asian nation declines to honor an arbitration ruling in a $1.2 billion tax dispute, according to a letter the company sent
India is about to join countries including Venezuela in being threatened by asset seizures across the world. Cairn Energy Plc will push authorities to impound Indian assets if the South Asian nation declines to honor an arbitration ruling in a $1.2 billion tax dispute, according to a letter the company sent to the Indian High Commission in the UK An international tribunal last month said India’s tax claim was not valid and asked Prime Minister Narendra Modi’s administration to return the money to Cairn.
While US crude explorer ConocoPhillips has been seeking to recoup $10 billion from Venezuela for years, it’s the first time in recent memory a company has threatened to Assets seize India’s overseas assets. The warning follows a series of events that can be traced back to a 2012 law change allowing the nation’s authorities to retrospectively tax capital gains. The ruling is final and binding, and failure to comply would breach the UK-India bilateral investment protection treaty and other international rules, Cairn Energy’s Chief Executive Officer, Simon Thomson wrote in the letter addressed to the Indian High Commissioner Gaitri Issar Kumar in London, and reviewed by Bloomberg News..