Centre seeks time for decision on appealing against Vodafone int'l arbitration award

New Delhi: The Centre on Tuesday sought time in Delhi High Court to decide if it would challenge an international arbitration tribunal’s award under India-Netherlands Bilateral Investment Treaty in favour of telecom major Vodafone in the ₹22,000 crore tax demand.

The Delhi HC has allowed the government two weeks to respond and will hear the matter on December 8.

Additional Solicitor General (ASG) Chetan Sharma informed a bench of Justices Rajiv Sahai Endlaw and Asha Menon that the instructions are still awaited as the decision is to be taken by the empowered committee of the Central government, which has not met.


The Permanent Court of Arbitration in The Hague had last month ruled in favour ofVodafone Group and against the Indian tax department in the ₹22,000 crore tax demand case stemming from its 2007 acquisition of Hutchison Essar.

India’s tax department had contended that Vodafone should have withheld tax on the deal and issued a notice seeking ₹11,218 crore, later augmented by ₹7,900 crore in penalties. Vodafone, subsequently, dragged India to international arbitration after the latter amended the Income-Tax Act retrospectively in 2012 after losing the case in the apex court.

The ASG’s reply was in response to the high court’s query raised on October 7 as to whether it intends to abide by the international arbitration tribunal’s decision or challenge it further.

Senior advocate Harish Salve, representing Vodafone, said there was no cause left for the continuation of the present injunction proceedings.