Vodafone wins international arbitration against India in $2 billion tax dispute case

New Delhi: British telco Vodafone Group Plc won a decade-long battle against the Indian tax department’s demand of Rs 20,000 crore, stemming from its entry into the country in 2007, said people with knowledge of the matter. The victory in the Permanent Court of Arbitration in The Hague may finally signal an end to the retrospective tax amendment case that had become a symbol of the country’s aggressive tax collection methods, experts said. The Vodafone Idea stock rose 13.6% to close at Rs 10.36 on the BSE.

The government will examine the order and further action will be taken after seeking legal opinion, including whether to appeal against the decision in the appropriate court in Singapore, said persons with knowledge of the matter. There was also no question of the government losing Rs 20,000 crore as Vodafone had not paid the original tax demand or the interest and penalties, they said. The tribunal had not accepted Vodafone’s demand for award of damages, they added.