New Delhi: UK telecom company Vodafone has won a landmark international arbitration case against the Indian government. Indeed, this matter of about Rs 20,000 crore is about precedent tax. In this case, the decision is in favor of Vodafone. During the hearing of the case, the tribunal said that the tax liability imposed on Vodafone by the Government of India is a violation of the investment agreement between India and the Netherlands.
Let me tell you that the case between the Government of India and Vodafone was about a pre-tax of Rs 20,000 crore. In 2016, the company moved the entire case to the International Court of Justice due to a lack of agreement between Vodafone and the government. Vodafone has been relieved after a lengthy hearing.
What is the whole matter
The case began in 2007. This was the same year that Vodafone entered India. This year Vodafone acquired Hutchinson Essar (popularly known as Hutch). Vodafone acquired a 67 per cent stake in Hutchinson Essar. Vodafone paid more than 11 billion for the acquisition. Hutchinson Essar was a mobile company operating in India.