New Delhi: British telecom giant Vodafone Group plc 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 ruled that India’s demand in past taxes were in breach of fair treatment under a bilateral investment protection pact.
It was not immediately known if the Indian government will abide by the arbitration award. Sources with direct knowledge of the matter said the government of India’s liability will be restricted to about Rs 75 crore. This includes Rs 30 crore as legal and other costs and another Rs 45 crore by way of tax refund.
More than the liability arising from the arbitration verdict, India faces reputational risk over its laws that mandate extract taxes from foreign companies with retrospective effect. That law, brought in to provide a…
