Not received notice of Cairn identifying Indian assets for seizing: Govt sources

Cairn did not pay a single rupee tax anywhere in the world in respect of the impugned transactions, informed sources of the government pointed out.

Reacting to reports that the UK's Cairn Energy has identified USD 70 billion of Indian assets overseas for attachment, informed sources in the government on Sunday said that it has not received any formal notice. Dismissing such reports as "speculative", the sources said that the government is well aware of its legal rights and will defend its case in courts, if such proceedings materialise. Sources also pointed out that Cairn did not pay a single rupee tax anywhere in the world in respect of the impugned transactions.

According to reports that informed sources of the government dismissed as speculations, UK's Cairn Energy has brought a lawsuit in a US court that potentially can lead to seizing of Air India's overseas assets. (PTI)

According to reports, the assets that Cairn has identified range across several government undertakings including Air India's planes, Shipping Corporation of India's vessels etc.

"The Indian government naturally will challenge such seizure but to save the assets it may have to pawn money equivalent to the value of assets in some financial security such as bank guarantee. The court will return such a guarantee to India if it does not find merit in Cairn's case. But the surety will be passed on to Cairn if the court finds that India had failed to honour its obligation," a source said to news agency PTI.

In the past, Pakistan and Venezuela faced similar enforcement action from Cairn. Cairn on May 14 filed a lawsuit in a New York court to get Air India recognised as the alter ego of India and that "it should be held jointly and severally responsible for India's debts, including from any judgment resulting from recognition of the award", the news agency reported.