InvestorQ : Why has government asked banks to be careful about global assets?
Sam Eswaran made post

Why has government asked banks to be careful about global assets?

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Moii Chavate answered.
1 month ago
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This pertains to the Cairn case and the favourable arbitral court ruling they have got. Indian government instructed PSU banks to ring-fence and protect their dollar deposits after Cairn Energy PLC threatened to seize India’s offshore assets. Technically, Cairn can push for impounding such Indian assets like bank deposits, aircraft, ocean liners etc.

In case India refuses to honour the arbitration ruling of $1.2 billion, Cairn has other options although these are rarely used. Cairn can either negotiate with the Indian government or it can impound assets or it can monetize the arbitral award to a third party.

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