New Delhi [India], May 23 (ANI): The Government of India (GOI) has strongly condemned the false reporting in certain media by "some vested interests" claiming that the Centre has purportedly asked state-owned banks to withdraw funds from foreign currency accounts abroad in anticipation of the potential seizure of such accounts with regard to the Cairn legal dispute.
Condemning all such source-based reports as false, the GOI in a statement said that these are totally incorrect reports which were 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.
"The GOI is defending its case in this legal dispute. It is a fact that the government has filed an application on March 22, 2021, to set aside the December 2020 international arbitral award in The Hague Court of Appeal," the statement added.
The government has raised several arguments that warrant setting aside of the award including but not limited to the arbitral tribunal improperly exercised jurisdiction over a national tax dispute that the Republic of India never offered and/or agreed to arbitrate.
The GoI claims the award are based on an abusive tax avoidance scheme that was a gross violation of Indian tax laws, thereby depriving Cairn's alleged investments of any protection under the India-UK bilateral investment treaty.
The government also claims the award improperly ratifies Cairn's scheme to achieve Double Non-Taxation, which was designed to avoid paying taxes anywhere in the world, a significant public policy concern for governments worldwide. This proceeding is pending.
The Centre said it is committed to pursuing all legal avenues to defend its case in this dispute worldwide.
It is also stated that the CEO and the representatives of Cairns have approached the GOI for discussions to resolve the matter. Constructive discussions have been held and the Government remains open to an amicable solution to the dispute within the country's legal framework.
Cairn Energy had moved courts in nine countries to enforce its $1.4 billion arbitral award against India, which it won after a dispute with the country's revenue authority over a retroactively applied capital gains tax.
Courts in five countries including the US and the UK have given recognition to an arbitration award that asked India to return USD 1.4 billion to Cairn Energy plc. (ANI)