Cairn Energy Sues Air India as Proxy for Indian Govt to Recover $1.2 Billion

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Cairn Energy Sues Air India as Proxy for Indian Govt to Recover $1.2 Billion
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- UK’s Cairn Energy has filed a case against Air India, India’s national airline, to enforce a $1.2 billion arbitration award that it won in a tax dispute against India, according to a US District Court filing reviewed by Reuters.

Cairn has said that Air India, which is completely owned by the Indian government, is "legally indistinct from the state itself.”

“The nominal distinction between India and Air India is illusory and serves only to aid India in improperly shielding its assets from creditors like (Cairn),” the filing said.

Cairn filed this suit on Friday in the US District Court for the Southern (NYSE: SO ) District of New York and claims that Air India is liable in case the Indian government is not willing to pay the $1.2 billion. This included the principal amount since 2014 and interest that has been compounding semi-annually.

Media outlets have been reporting on how Cairn Energy has been sending out signals that it would go after India’s national assets on foreign lands. Investing.com had reported this in December 2020 and February 2021.

In May, Investing.com had reported how senior public sector bank chiefs had been advised by the government that there is a possibility of Cairn attaching funds, and has asked banks to keep the government informed.

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  • Shashi Gupta @Shashi Gupta
    what is issue. hoe Cairn energy won the case. Pl advise
    Like 0
  • Abhinav gupta @Abhinav gupta
    British Govt owns india 45 Trillion Dollar of money it looted from India and from its reaources for over 200 years during its reign. They can deduct 1.2 billion dollar and return the rest to India, however theirs interest imposed to it but India has a heart to let it go.
    Like 1
  • Ime my @Ime my
    "Vikas ho raha hai..!!" GooD information. Nice article. 👌
    Like 1

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