New Delhi mulls steps to avoid Air India aircraft seizure

In order to avoid Air India having its assets seized in a long-running corporate tax case between the Indian government and Cairn Energy over a US$1.2b award, Delhi is considering giving away some of its oilfields, sources told the Business Standard newspaper on January 31. Last week, the Edinburgh-based energy firm threatened to seize Indian state assets following the award for damages in a December 2020 ruling at the Permanent Court of Arbitration in The Hague, with possible targets including those owned by public-sector enterprises such as Air India. Sources told the BBC that Cairn had started identifying assets it could seize if India did not comply and that these could include ships as well as aircraft. Cairn Energy filed the case after income tax officials seized its 10% stake in Cairn India in 2014 following a corporate reorganisation. The tribunal in The Hague ruled unanimously that Delhi had violated the UK-India bilateral investment treaty, ordering the government to immediately pay the award plus interest and costs. The government has so far given no indication as to whether it intends to honour the verdict.<br/>