InvestorQ : What are the next steps for Air India as Cairn Energy threatens them with legal recourse?
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What are the next steps for Air India as Cairn Energy threatens them with legal recourse?

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NISHA Nayak answered.
4 weeks ago
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As a response to the refusal of the Indian government willingness to acknowledge the outstanding payment to Cairn Energy, the company has threatened to attach the assets of Air India. It sees Air India as a proxy attachment of the Indian government. The Indian government holds Cairn Energy guilty of evading taxes on the sale of stake in Cairn India to Vedanta by using a structure that was designed purely to evade taxes.

Air India now has got time till mid-July to challenge the lawsuit, although the company may have already ring-fenced its global assets against the . Based on the positive arbitral award, Cairn plans to recover $1.26 billion from the assets of Air India. Whether it actually happens or not remains to be seen. India had confiscated dividends and the shares in Cairn UK’s demat account for non-payment of capital gains tax and this claim pertains to that.

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