India

Government To Study Vodafone Arbitration Case Award

Government To Study Vodafone Arbitration Case Award

Government said on Friday that it will study an international arbitration tribunal's ruling in favour of Vodafone Group Plc, ending one of the most high-profile disputes in the country involving a $2 billion tax claim.

An international arbitration tribunal in The Hague ruled that government's imposition of a tax liability on Vodafone, as well as interest and penalties, were in a breach of an investment treaty agreement between India and the Netherlands.

It also directed India to pay 4.3 million pounds to the company as compensation for its legal costs.

"The government will be studying the award and all its aspects carefully in consultation with our counsels," finance ministry said in a statement, adding that it will consider all options, including legal remedies.