The British telecom giant moved the Hague-based International Court of Justice (ICJ) in 2016.
Vodafone Group Plc has won an international arbitration case against the Indian government in a ₹14,200 crore retrospective tax dispute, according to two sources with direct knowledge of the matter.The tribunal ruled that the Indian government’s imposition of a tax liability on Vodafone is in breach of the investment treaty agreement between India and the Netherlands, one of the sources said. The British telecom giant moved the Hague-based International Court of Justice (ICJ) in 2016. Vodafone in 2013 had invoked India-Netherlands bilateral investment treaty seeking resolution to the tax demand imposed on it by enacting a tax law with retrospective effect to sidestep a Supreme Court judgement that went in the company’s favour.Conciliatory proceedings were initiated to resolve the dispute but differences led to a breakdown following which arbitration was initiated.The government had initially slapped a tax demand of ₹7,990 crore on Vodafone for failing to deduct tax on capital gains made over its $11-billion acquisition of 67% stake in the mobile phone business owned by Hutchison Whampoa in 2007.
A letter from the Editor
Dear subscriber,Thank you!Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.Suresh Nambath
