The Maharaja has got caught in the line of fire between the Govt and Cairn Energy in the $1.2 billion tax award tussle. Reuters reports that energy giant Cairn has sued Air India in a US District Court in New York to enforce a $1.2 billion arbitration award that it won in a tax dispute against India.
Cairn since the start of 2021 had begun taking steps to identify Indian assets overseas against which it could enforce the award including bank accounts, aircraft and even ships. Reports indicated that the govt had alerted PSU banks to reduce cash holdings in overseas accounts
In February, Cairn filed a separate case in a US court to recognise and confirm the arbitration award, including payments due since 2014, it approached courts in 6 other countries as well for the same.