Gordon Brown writes to Manmohan on Vodafone

LONDON: British Prime Minister Gordon Brown has written to his Indian counterpart Manmohan Singh about a tax claim on Vodafone Group Plc, even as India has said that the matter is in the court and no decision has been taken.

Indian income tax authorities are seeking USD 2 billion in capital gains tax from Vodafone over its purchase of Hutchison Essar Ltd, three years ago, Bloomberg-UTV said.

In his letter Brown said that taxing cross-border deals such as the Vodafone one could create uncertainty for foreign investors and affect the country's investment climate.

But India has replied that the matter was before the court.