![]() |
|||
Friday, July 9 2021 Dive In |
|||
|
|||
That is the Kenyan government’s response to a widely publicised project of a charity—founded by PM Boris Johnson’s wife, Carrie. It is supposed to be the world’s first such initiative. And it has entailed months of organising, including purchasing purpose-made crates to transport the elephants. The only small omission: Someone forgot to tell the Kenyan government. |
|||
![]() |
|||
![]() |
|||
A shocking seizure of India’s assets |
|||
The TLDR: A French court froze 20 residential properties worth over €20 million ($24 million) belonging to the Indian government in Paris. The reason: The government owes a Scottish company Cairn Energy $1.7 billion in a tax dispute—and hasn’t yet paid up. The company is now targeting Indian assets around the world—including those owned by Air India.
What is this tax dispute?
And the government isn’t paying up?The government has appealed the Hague verdict on the grounds that it has the sovereign right to tax any entity operating within its borders—and that right is not subject to any bilateral treaty. And in April it refused Cairn’s offer to invest the entire $1.2 billion award plus $500 million in interest in India. The government’s counter-offer asks Cairn to come to the table under the Indian tax dispute scheme ‘Vivad se Vishwas’. It will reduce the amount owed to $682.5 million (Rs 5100 crore), waive all interest and penalties, and return 1.8% of the seized shares in Cairn India.
And now Cairn is seizing the government’s assets?The company has already filed lawsuits in the US, the UK, Canada, Singapore, Mauritius and the Netherlands in an attempt to grab the Indian government assets. France is the first country where it has been successful in pressing its claims. In May, it filed a case in New York arguing that it should be able to seize the assets of Air India. Reason: The airline is “legally indistinct from the state itself… The nominal distinction between India and Air India is illusory and serves only to aid India in improperly shielding its assets from creditors like (Cairn).”
Point to note: As a BBC News analyst explains:
And will Cairn win these cases? |
|||
|
|||
|
|||
|
|||
|
|||
|
|||
Complaints, suggestions or just wanna say hi? Talk to us at talktous@splainer.in |
|||
|
|||
You are receiving this email because you opted in via our website. Unsubscribe from this list. |