Cairn case: French court orders govt’s Paris properties frozen

New Delhi: A French court has ordered a freeze on residential properties owned by the Indian government in central Paris, in what is seen as a setback for the Centre in its tax dispute with London-listed Cairn Energy Plc.

Tribunal judiciaire de Paris’s ruling based on Cairn Energy’s application will impact some 20 properties, valued at more than 20 million euros (Rs 177 crore), as part of a guarantee of the debt owed to the British company that exited India a few years ago. Some of the properties are in the 16th Arrondissement of Paris, which is one of the wealthiest areas in the city.

“This is the necessary preparatory step to taking ownership of the properties and ensures that the proceeds of any sales would be due to Cairn,” said a source familiar with the proceedings. The action is part of Cairn’s enforcement strategy of pushing the government to withdraw its appeal against an international tribunal’s award in the retrospective taxation case.