Devas Joins Cairn in Trying to Seize Air India’s Overseas Assets

Devas Multimedia Pvt., a company seeking over $1.2 billion it won in international arbitration from India, has joined Cairn Energy Plc in seeking to seize Air India Ltd.’s assets abroad, Bloomberg News reported. Calling the flagship airline an “alter ego” of the Indian state and therefore liable for the sovereign’s debts, Devas filed a petition in New York asking Air India to pay the amount or forfeit its U.S. property including planes, cargo handling equipment and artwork. The move may threaten India’s much-delayed plans to sell the indebted loss-making carrier and risks denting India’s image as an investment destination. India last year suffered two big losses in international arbitrations -- the $3 billion tax dispute with Vodafone Group Plc and the $1.2 billion dispute with Cairn. India has challenged both rulings. Around the time of Cairn’s petition in May, Indian authorities asked state-run banks to protect their dollar deposits on concern that these could also be at risk of seizure, Bloomberg News had reported. Read more.
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