Vodafone wins long battle against India over Rs 20,000 cr retro tax demand

India told to bear 60% of Voda's legal costs amounting to over £4 million; FinMin tells govt to consult counsel and consider all options

The Permanent Court of Arbitration at the Hague has upheld the plea of the Vodafone group in its long-pending case against the Income Tax Department’s demand for Rs 20,000 crore for acquiring Hutchison Whampoa’s stake in what was Hutchison-Essar in 2007 through an overseas deal. Experts say the order may benefit other tax disputes that are in arbitration such as those of Cairn and Vedanta.
 
“The Respondent’s (India’s) conduct in respect of the imposition on the Claimant (Vodafone) of an asserted liability to tax notwithstanding the Supreme Court judgement is in breach of the guarantee of fair and equitable