“Cairn Energy and Devas Multimedia have filed lawsuits in the United States District Court for Southern District of New York seeking declaratory and money judgement against Air India Limited as an alter ego of the Republic of India,” Singh mentioned in a written reply to a query in Lok Sabha.
There is “no likely impact” of the lawsuits on the continued disinvestment course of of Air India Limited as it’s a separate company entity with its personal administration and board, he talked about.
“The case is being defended by Air India Limited. The company has appointed lawyers to defend its interests,” Singh mentioned.
Meanwhile, in a reply to a different query within the Lok Sabha, Singh mentioned monetary bids for Air India from certified bidders is likely to be acquired by September 15 this yr.
The Centre had began the disinvestment course of for Air India in January final yr.
In May this yr, Cairn Energy introduced a lawsuit within the US District Court for the Southern District of New York pleading that Air India is managed by the Indian authorities a lot that they’re “alter egos” and the airline ought to be held accountable for the arbitration award of round USD 1.725 billion.
The Scottish agency invested within the oil and fuel sector in India in 1994 and a decade later it made an enormous oil discovery in Rajasthan. In 2006 it listed its Indian belongings on the BSE.
Five years after that the federal government handed a retroactive tax law and billed Cairn Rs 10,247 crore plus curiosity and penalty for the reorganisation tied to the flotation.
The state then expropriated and liquidated Cairn’s remaining shares within the Indian entity, seized dividends and withheld tax refunds to get well an element of the demand.
Cairn challenged the transfer earlier than an arbitration tribunal in The Hague, which in December awarded it USD 1.2 billion (over Rs 8,800 crore) plus prices and curiosity, which totals USD 1.725 billion (Rs 12,600 crore) as of December 2020.
The firm, which beforehand mentioned the ruling was binding and enforceable below worldwide treaty regulation, has been since then courting Indian authorities officers to get the cash paid.
But the federal government has not agreed to pay.
On October 27 final yr, a US courtroom had requested Antrix Corporation, the business arm of Indian Space Research Organisation (ISRO), to pay compensation of USD 1.2 billion to a Bengaluru-based startup, Devas Multimedia, for cancelling a satellite tv for pc deal in 2005.
According to the settlement in January 2005, Antrix agreed to construct, launch and function two satellites and to make accessible 70 MHz of S-band spectrum to Devas, which the latter deliberate to make use of to supply hybrid satellite tv for pc and terrestrial communication companies all through India.
The settlement was terminated by Antrix in February 2011. In June 2011, Devas commenced arbitration proceedings below the Rules of Arbitration of the International Chamber of Commerce.
In September 2015, the arbitration tribunal requested the business arm of ISRO to pay USD 672 million.
In his order dated October 27, 2020, Judge Thomas S Zilly, US District Judge, Western District of Washington, Seattle, dominated that Antrix Corporation pay a compensation of USD 562.5 million to Devas Multimedia Corporation and the associated rate of interest amounting to a complete of USD 1.2 billion.