New Delhi: French Court has ordered freezing on residential property owned by the Government of India in Central Paris, in what was seen as a setback for the center in a tax dispute with PLC Cairn Energy registered in London.
The Judiceiae de Paris court court based on the Cairn Energy application will have an impact on around 20 properties, worth more than 20 million euros (RS 177 Crore), as part of the debt guarantee payable to the UK company a few years ago.
Some properties are in the 16th Ardisement of Paris, which is one of the richest areas in the city.
“This is the steps for the preparation needed to take property ownership and ensure that the proceeds of sales will be caused by Cairn,” said a source familiar with the process.
Actions in France are part of the Cairn Enforcement Strategy to encourage the government to attract its appeal on international tribunal awards in the case of retrospective taxation.
The Arbitration court has argued that the government has violated the provisions of the investment agreement in finding Capital Gain taxes from British companies.
The company – which has less than 200 markets and market capitalization of £ 755 million (under RS 7,800 Crore) – has submitted a case in several countries to pursue an international arbitration award that has not been paid $ 1.7 billion (Rs 12,750 Crore).
The arbitration award has also been registered in other jurisdictions, including the US, Britain, Canada, Singapore, Mauritius, France and the Netherlands because the company intends to focus on high-value assets.
It has submitted cases in the South New York district, seeking judicial confirmation that Air India can be classified as an ego ego of India and thus together responsible for the arbitration award.
“Our strong preferences remain agreed solution, friendly with the Indian government to withdraw this problem to be close, and for that we have submitted a series of detailed proposals to them since February this year.
However, in the absence of a settlement, Cairn must take all The legal action needed to protect the interests of its international shareholders, “said a company spokesman.
This case is related to a retrospective amendment to the law, allowing the government to collect a tax increase in capital for sale or asset transfers located in India, a step tested by Pranab Mukherjee after the government lost the case in the Supreme Court.
The Modi government has been attached to the stand and has now challenged awards who argue that bilateral investment agreements cannot rule out legislative strength.
Cairn case: French court order Property Paris Govt frozen
