DEA rules out review of nod to Vodafone's FDI proposal in 2007

NEW DELHI: The department of economic affairs has ruled out any review of the clearance given to Vodafone's foreign direct investment proposal in 2007, giving respite to the company that is caught up in an 20,000 crore tax dispute with the government.

"The foreign investment promotion board had cleared the FDI proposal as per the policy of the day after securing legal opinion on it," said an official.

Vodafone had bought Hutchison's operations in India through Vodafone International Holdings BV in 2007 in an $11 billion deal.

The company has sought arbitration under the India-Netherlands bilateral investment promotion agreement after the government changed income tax law retrospectively to override a Supreme Court ruling that went in favour of Vodafone.