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New Delhi, September 25
British telecom giant Vodafone Group on Friday won an arbitration against the Indian Government over a demand for Rs 22,100 crore in taxes using retrospective legislation.
An international arbitration tribunal at the Hague ruled that India’s demand in past taxes was in breach of fair treatment under a bilateral investment protection pact.
Rs75 cr liability: govt
Govt’s liability will be about Rs75 cr in cost refund, said sources
Vodafone had challenged India’s usage of a 2012 law to tax it retrospectively
The company was taxed for its $11 billion acquisition of 67% stake in mobile phone company Hutchison Whampoa in 2007
“Vodafone confirms that the investment treaty tribunal ruled in Vodafone’s favour,” the firm said in a statement. “This was a unanimous decision, including India’s appointed arbitrator Rodrigo Oreamuno. The tribunal held that any attempt by India to enforce the tax demand would be a violation of India’s international law obligations,” it said. It was not immediately known if the Indian government will abide by the arbitration award. The government liability will be restricted to about Rs 75 crore in cost refund, sources with direct knowledge of the matter said. As per the award, the government has to reimburse Vodafone 60 per cent of its legal costs and half of the 6,000 Euros cost borne by Vodafone for appointing an arbitrator on the panel. — PTI
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