The international arbitration tribunal in The Hague has ruled in favour of Vodafone Group Plc in a Rs 20,000-crore tax liability case, which the British telecom major had described as “unfair”.
“Vodafone confirms that the investment treaty tribunal found in Vodafone’s favour. 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,” a Vodafone Group spokesperson told BusinessLine in an email reply.
In its ruling against the Indian government, the tribunal said the Government must stop seeking dues from Vodafone and should also pay over Rs 40 crore to the company as partial compensation for its legal costs.
The dispute stems from Vodafone's buyout of Hutchison Whampoa’s mobile assets in 2007. The Indian Government had sought taxes on the acquisition, which the company contested in Indian courts.
Vodafone Group Plc later moved the The Permanent Court of Arbitration in The Hague in April 2014.