Cairn identifies $70 bn Indian assets for seizing to recover amount due from government telegraphindia.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from telegraphindia.com Daily Mail and Mail on Sunday newspapers.
The finance ministry 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. 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. Cash of Indian banks lying in nations such as the US and the UK are said to be easy target for seizing and enforcing the arbitration award.
Synopsis
Cash of Indian banks lying in nations such as the US and the UK are said to be easy target for seizing and enforcing the arbitration award. 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.
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This will allow the Indian government to quickly take legal recourse to prevent the assets from being taken over, they said adding that this has been done out of abundant caution and funds with banks are not of Government of India but of public.
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The US Senate nod to President Biden s new stimulus package and strong economic readings globally upbeat numbers in US payroll report and data showing a surge in Chinese February exports may send domestic stocks soaring on Monday. Crude
oil that zipped past $70 a barrel, however, may play spoiler.
Here s breaking down the pre-market actions:
STATE OF THE MARKETS
Nifty futures on the Singapore Exchange traded 161 points, or 1.08 per cent, higher at 15,114.50 in signs that Dalal Street was headed for a gap-up start on Monday.
Tech View: Nifty charts show weak trend
Nifty50 on Friday slipped below the immediate resistance at the 15,000 mark. The index ended the session forming a Spinning Top candle on the daily scale and a Shooting Star-like candle on the weekly chart. Analysts said the index is likely to test lower levels in the coming days.
After three days of talks with top finance ministry officials, UK's Cairn Energy plc on Sunday said it is hopeful of reaching an amicable resolution on USD 1.4 billion that an arbitration award has ordered India to return, but insisted it will continue to take steps to protect shareholder interest.