State banks not asked to withdraw funds from foreign currency accounts over Cairn dispute: Centre

Such reports appearing in some media platforms are attributed to "unnamed sources" and are not based on true facts, the ministry said in a strongly worded statement.

The Centre has not asked state-owned banks to withdraw funds from foreign currency accounts abroad over the Cairn legal dispute, the finance ministry said on Sunday, condemning such reports as baseless. Certain vested parties appear to have "orchestrated" such misleading reporting, the finance ministry said in a statement.

Certain vested parties appear to have orchestrated such misleading reporting, the finance ministry said in a statement. (Pradeep Gaur/Mint)

Such reports appearing in some media platforms are attributed to "unnamed sources" and are not based on true facts, the ministry said in a strongly worded statement.

Early this month, a Reuters report claimed that India has asked its state-run banks to withdraw funds from foreign currency accounts fearing that Cairn Energy may "try to seize the cash" after Cairn was awarded damages of more than $1.2 billion, plus interest and costs in December in a legal tussle over retrospective tax claims.

The report was attributed to a "banker", and two government officials. It also said that the finance ministry did not respond.

Without naming the news agency, the ministry in its statement said that these claims are not based on true facts. "Certain vested parties appear to have orchestrated such misleading reporting, which often relies upon unnamed sources and presents a lopsided picture of factual and legal developments in the case," it said.

It also said that the CEO and the representatives of Cairns have approached the government for discussions to resolve the matter. Constructive discussions have been held and the Government remains open for an amicable solution to the dispute within the country's legal framework.