Arun Sarin during Vodafone-Essar Conference in Delhi (Source:BCCL)
In 2012, the Supreme Court of India ruled that Vodafone was not liable to pay any taxes over the acquisition of assets in India. In May that year, the government amended tax laws with retrospective effect.
This means the Vodafone Group became liable for ₹22,100 crore yet again over its deal to buy stake Hutchinson Essar.
The Vodafone Group, through its Dutch subsidiary invoked arbitration under India-Netherlands BIPA and then issued a notice of arbitration of in April, 2014.
Vodafone has maintained that there is no liability and that it will “continue to defend vigorously any allegation that VIHBV or Vodafone India Ltd is liable to pay tax in connection with the transaction with Hutchison and will continue to exercise all rights to seek redress".