Indian authorities asked state-run banks to protect their dollar deposits on concern they could be frozen if Cairn Energy Plc moves to seize India’s offshore assets as part of a tax dispute, according to people with knowledge of the matter.
Lenders aren’t committing to US dollar purchases in the forwards market since this guidance last week, the people said, asking not to be identified discussing private deliberations. UK-based Cairn Energy can push authorities to impound Indian assets if India declines to honor an arbitration ruling in a $1.2 billion tax dispute, according to a letter the company sent to the