A Scottish company fights to stop India’s national airliner

A Scottish company with 16 employees is unlikely to take over India’s national carrier.

But Kieran Energy is only looking for authorities to do the legal story that UK Prime Minister Boris Johnson is willing to stand up for British agencies when he is trying to close the post-Brexit trade deal.

Kieron, whose annual income is below $ 400m but whose investors include the likes of Blackrock and Vanguard, is The case is The Air India Delhi in New York to execute a reward against New Delhi of দের 1.2 billion in additional interest – a total of .7 1.7 billion.

The oil and gas company Air India is trying to prove the “changed ego” of the Indian government and so collectively “… Itself is responsible for India and its responsibility”, a move that could pave the way for US marshals to occupy carrier jets. Appointed, who assisted in 2012 Seize a ship in Argentina Ghana as part of a long battle between US hedge fund Elliott Capital Management and Buenos Aires.

Cairn had the prize Made by an international tribunal In the Netherlands in December. If implemented, it could generate handsome returns for Cairn shareholders and be reinvigorated year after year through a business that would force it to abandon assets, lay off employees and limit investment.

But five months later, Indian Prime Minister Narendra Modi’s government showed no sign of plans to pay.

The lawsuit was filed by a number of Western companies and New Delhi. Vodafone also became Involved in a war With the tax authorities of India, who have demanded 3 3 billion in back-payments.

This comes at a sensitive time in UK-India relations. The countries last month Outline a “2030 street map” Strengthening relations in areas such as trade and defense. London hopes to begin talks on a full trade deal this autumn.

The war was originally the beginning of a 2012 law that allowed New Delhi to levy earlier taxes on border transactions in India.

In 2014, Cairn was banned from selling its remaining 10 per cent stake in former subsidiary Kern India as authorities began a tax investigation. The following year it was slapped বিল 1.6bn tax bill.

Kane seeks obligation to withdraw tax claims under the UK-India Bilateral Investment Treaty and seeks compensation for financial losses. Cairn India sold most of its remaining shares, which were later merged with Vedanta, to the Indian tax authorities.

Johnson did not mention the dispute during a call with Modi last month. The UK line is that it is not involved in investor-state legal proceedings, for which it is not a party, although people familiar with the matter say previous administrations have raised Cairn.

“We cannot be in a position where Boris Johnson is failing to stand up for the interests of British institutions. . . Only in this hope can it pave the way for future trade agreements, “said Emily Thornberry, Labour’s shadow trade affairs secretary.

The Scottish Government said it would ensure that “Scottish economic and other interests in the United States have been made clear to the Government before and during future negotiations with the Government of India on a free trade agreement”.

Cairn, who has identified 70 billion Indian assets worldwide, said it was “open to constructive dialogue with the Indian government”.

International arbitration experts have suggested that other Indian-owned assets such as shares and bank accounts could be easy targets and the privatization that the Modi government is trying to do – the tactics against Air India were designed to have the greatest impact.

“They are trying to get a settlement,” said an international arbitrator’s lawyer, who described Cairn’s move as “aggressive.”

Satvik Verma, a New Delhi-based lawyer, said Kieran had several options because Indian courts do not recognize international arbitration awards approved under bilateral investment agreements. “Cairn is also accountable to its shareholders and will have to do everything possible to make it effective after receiving its rewards,” he said.

The top 15-Cairn shareholder says: “It makes a lot of money – at the end of the day you probably have to be aggressive.”

Rasmi Ranjan Das, joint secretary in the finance ministry, told the Financial Times that New Delhi remained in dialogue with Cairn. “The government is open to a drunken settlement, but it must be within the Indian legal framework,” he said. “The official position is tax. . . A sovereign act. “

He noted that Cairn was still involved in legal proceedings over tax disputes in India. And he said that Air India was a legally independent entity which “had no obligation to pay under the Cairn Arbitration Award or any other alleged debts or obligations of India”.

Kieron said it has “full confidence” in its position.

A Cairn Rig in Senegal

Implementing an award by a tribunal in the Netherlands could make Cairn shareholders earn good money and revitalize business.

Lawyers have suggested that India’s application to New York to “stay” the Air India process with a challenge to the Hague tribunal process would be a logical next step.

The tax war has taken a heavy toll on Cairn, whose shares were worth more than ৮ 8 in 2012 when India’s archeological law was introduced but now trades around 155 pp, although the stock has also been affected by factors such as the oil price crash. 2014 and 2020.

In addition to cutting employees and selling property in the early years of the conflict, observers say Kern has limitations in competing for wealth due to uncertainty about rewards. Size is increasingly important for independent oil and gas companies that are out of fashion with the equity market.

“Everyone knows that [London-listed] Harbor Energy and Energian and these [larger independent oil and gas companies] They’re going to be winners because they’re going to be big enough to take care of investors, ”said Nathan Piper, an analyst at Investech.

Cairn has been trying to move the business forward since 2015. . . But because of the uncertainty you got or whether you got bn 1bn they weren’t really able to do it.

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