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Why the govt would be justified in not accepting the Vodafone award

At the heart of the dispute are two conflicting doctrines and what both sides need now is a face saver

Narendra Modi
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Prime Minister, Narendra Modi addressing at the inauguration of the Patrika Gate in Jaipur, through video conferencing in New Delhi on Tuesday.

T C A Srinivasa-Raghavan
The government’s tax dispute of Rs 20,000 crore with Vodafone has been settled, for the time being, by a process of international arbitration in favour of Vodafone.

It remains to be seen if the government accepts the arbitration award or seeks fresh redressal. Most people believe that it should accept the award. But it would be justified in not doing so either.

This is because at the heart of the dispute are two conflicting doctrines — the right to fair treatment and the absolute nature of sovereign power which includes actions with retrospective
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Sep 29 2020 | 7:25 AM IST

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