India challenges Vodafone arbitration award, plans the same in Cairn case

Experts mixed on the Indian government response. Some say it will send wrong signal to investors, while others say bilateral investment treaties exclude tax disputes

India has challenged in Singapore an international arbitration tribunal’s verdict overturning its demand for Rs 22,100 crore in back taxes from Vodafone Group Plc.

The British telecom major in September had won the arbitration at The Hague, with the tribunal ruling that India’s imposition of the tax liability was in breach of the India-Netherlands bilateral investment treaty. India had 90 days to appeal the ruling. The appeal was filed closer to the deadline, which ended on Wednesday.

The Indian government has also lost an international arbitration case to energy giant Cairn Energy Plc over the retrospective levy of taxes, and has been