British oil and gas company Cairn Energy has received approval from a French court to confiscate the Indian government's properties in France. The company is looking to recover more than $1 billion of arbitral award it won in December last year. Cairn's spokesperson told CNBC-TV18 they prefer an amicable settlement but will take all necessary legal actions if the Indian government fails to cooperate.
Meanwhile, CNBC-TV18 has learnt from sources, who didn’t wish to be identified, in the finance ministry that the government is considering to pay back Rs 7,600 crore and is also assessing the implications of such a move.
As Cairn Energy approaches various international courts to attach Indian assets abroad, the finance ministry sources indicated that the government is considering an amicable solution to payback Rs 7,600 crore to Cairn Energy.
According to the sources, any payment to the company will be without interest and penalty and currently, the government is discussing the matter with Cairn Energy. They said India is waiting to hear back from the company.
The finance ministry today said that it is open to an amicable solution within the country’s legal framework. However, it would be important to note that repayment of taxes to Cairn would also have legal implications on other tax disputes like the Vodafone case, where the company has won arbitration award. There are 15 such cases in various stages of litigation.
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