Ministry of Finance asks PSBs to keep high vigil on any attempt to seize funds by Cairn

by Psu Connect
Date: 08-05-21

The Ministry of Finance has asked Public Sector Banks (PSBs) to be on high vigil against any attempt being made to seize their overseas deposits to recover USD 1.2 billion

Ministry of Finance asks PSBs to keep high vigil on any attempt to seize funds by Cairn

New Delhi: The Ministry of Finance has asked Public Sector Banks (PSBs) to be on high vigil against any attempt being made to seize their overseas deposits to recover USD 1.2 billion that the UK's Cairn Energy plc has been awarded against India levying retrospective taxes, sources said.

According to earlier reports, Cairn had previously stated that it can seize Indian assets abroad if it is not paid USD 1.2 billion plus interest and cost that an international arbitration panel had awarded against levy of retrospective taxes.

To guard against such cash being taken over, the Finance Ministry has asked PSBs to be extra vigilant and immediately report back any attempt Cairn makes to legally attach the deposits, two sources aware of the matter said.

Cash of Indian banks lying in nations such as the US and the UK are said to be easy targets for seizing and enforcing the arbitration award. (BS)