India challenges arbitration ruling in Singapore in Vodafone retro tax case

Ending one of the most high-profile disputes that had caused concern among investors over retrospective tax claims on companies, Vodafone had won a case against India last September.  The same has been challenged by India in an international arbitration court in Singapore regarding its verdict against it over a $2 billion tax claim involving Vodafone Group Plc, it is understood.

Earlier, an international arbitration tribunal in The Hague had ruled that India's imposition of a tax liability on Vodafone was in a breach of an investment treaty agreement between India and the Netherlands. India had 90 days to appeal the ruling.

This week, India lost another international arbitration case against Cairn Energy over a tax dispute. It has been ordered to pay the UK-listed company over $1.2 billion in damages and costs.

In this case too, India is expected to challenge this ruling given the size of the award.

India has faced a string of arbitrations by investors including Deutsche Telekom, Nissan Motor Co, Vodafone and Cairn Energy over issues ranging from retrospective taxation to payment-related disputes.

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