NEW DELHI, 28 January, 2021 (TON): Indian government assets threatened by the Cairn Energy, following a $1.2bn (£880m) award from a long-running corporate tax case.

Damages were awarded to the U.K. based energy firm by an international tribunal in the dispute with the Indian government the previous month.

If the Indian government does not comply with the order, Cairn could seize their assets being identified.

Sources have said that these could include planes and ships. He case was filed after income tax officials seized Cairn's 10% stake in its Indian subsidiary.

Delhi violated the 2014 UK-India bilateral investment treaty, tribunal ruled out in December.

The treaty ordered Delhi to pay $1.2bn in damages, interest and costs to compensate Cairn for the shares as well as impounded dividends or shares.

But since the 582-page judgment was issued, Indian Prime Minister Narendra Modi's government has given no indication about whether it intends to honor the verdict, even though payment was due immediately.

Cairn has sent a letter to Indian government officials, saying its shareholders "expect early resolution, failing which they will expect Cairn to pursue the award in conformity with its rights under the treaty".

"The award can be enforced against Indian assets in numerous jurisdictions around the world for which the necessary preparations have been put in place," the letter added.

The letter did not specifically stated when the assets might be seized; however the most possible targets are those of the public sector enterprises, e.g. state-owned Air-India.

The battle between the two concerned parties is from a 2012 law that changed the country’s tax regime. The tax authorities cited a new law in 2014 that claimed unpaid dues.