Chennai: The government of India has challenged in Singapore an international arbitration court’s verdict against it over a $2 billion tax claim involving Vodafone Group Plc.
The government had lost an international arbitration case against Vodafone in September over a $2 billion retrospective tax dispute.
Meanwhile, on Wednesday, Cairn Energy Plc won a major relief as the Permanent Court of Arbitration at The Hague ruled that the Indian government’s retrospective tax demand against the global oil and gas major was ‘inconsistent’ with the UK-India bilateral treaty.
The Permanent Court of Arbitration at The Hague on Wednesday not only invalidated India’s $2.74-billion 2015 tax claim on Cairn Energy, but also ordered it to return up to $1.4 billion in funds withheld, interest and costs, to the firm.