India denies asking state banks to withdraw money held overseas over Cairn dispute By Reuters
© Reuters. FILE PHOTO: Cairn India staff work at a storage facility for crude oil at Mangala oil discipline at Barmer within the desert Indian state of Rajasthan August 29, 2009. REUTERS/Parth Sanyal
NEW DELHI (Reuters) – India’s authorities on Sunday denied asking its state-run banks to withdraw funds from their overseas forex accounts overseas on fears that Cairn Power (OTC:) might try to seize the money in a tax dispute, including New Delhi was open to resolve the matter.
London-listed Cairn is concerned in a long-drawn out tussle with the Indian authorities over tax claims and was awarded damages of greater than $1.2 billion by a global tribunal late final yr.
New Delhi has filed an attraction towards the choice it calls “extremely flawed”.
Citing authorities officers and a banker, Reuters and different media reported on Could 6 that the finance ministry had requested state-run banks to withdraw the overseas funds on concern that courts overseas may order that belongings of their jurisdiction – together with financial institution accounts – be remitted to Cairn.
The ministry, which gave no remark on the time, known as the experiences “false” in a press release on Sunday, saying no such directions had been issued.
“Authorities of India is vigorously defending its case on this authorized dispute … Constructive discussions have been held and the Authorities stays open for an amicable resolution to the dispute,” the assertion mentioned.
Individually this month, Cairn additionally sued India’s flagship service Air India to implement the arbitration award, in accordance with a U.S. District Courtroom submitting reviewed by Reuters.
The worldwide tribunal had dominated unanimously that India had breached its obligations to Cairn underneath the UK-India Bilateral Funding Treaty and awarded Cairn damages of $1.2 billion plus curiosity and prices.
Indian authorities in 2014 had demanded 102 billion rupees ($1.4 billion) from Cairn for taxes it mentioned had been owed on capital positive aspects associated to the 2007 itemizing of the corporate’s native unit.
“The Authorities has raised a number of arguments that warrant setting apart of the award,” the finance ministry’s assertion on Sunday mentioned.
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