Making a mockery of arbitration

Ending "tax terrorism" was the BJP's promise in the 2014 election that brought Narendra Modi to power giving hope to the likes of the UK's Cairn Energy Plc. But the hopes have been belied

Topics
Arbitration | Vodafone tax case | Cairn tax dispute

Shyamal Majumdar  |  New Delhi 

Shyamal Majumdar

It’s close to two months now that an international arbitration tribunal ruled that India’s imposition of a tax liability on Vodafone was in breach of an investment treaty agreement between India and the Netherlands.

The company had challenged before the arbitration tribunal the Indian government’s usage of a 2012 legislation to retrospectively tax deals like Vodafone’s $11-billion acquisition of a 67 per cent stake in the mobile phone business owned by Hutchison Whampoa in 2007. The government’s response has been predictable: On Tuesday, it sought more ...

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First Published: Thu, November 19 2020. 00:51 IST
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