InvestorQ : With Indian government challenging the Vodafone order, do you see them challenging the Sterlite order also?
vaishnavi mhatre made post

With Indian government challenging the Vodafone order, do you see them challenging the Sterlite order also?

Answer
image
vidhya Laxmi answered.
4 months ago
Follow

Yes, that does look like the logical next step for India. For now we know for sure that India has challenged the international arbitration tribunal's verdict on Vodafone. This challenge has been filed in a Singapore High Court protesting against the verdict of the Arbitration tribunal nullifying the retrospective tax demand of the Indian government.

It may be recollected that back in September 2020, the international arbitration tribunal had overturned India’s demand for Rs.22,100 crore in retrospective taxes from Vodafone. The government is yet to crystallize its response to the Cairn order which came in December but on similar lines from the Singapore arbitration tribunal.

In the case of Vodafone, the demands pertain to the 2007 acquisition of Hutch India by Vodafone PLC from Hutchison Whampoa of Hong Kong. In both the Vodafone and the Sterlite cases, the Tribunal had given an order against India as the Indo-UK treaty makes it mandatory to offer this concession. However, the longer this case drags on, the longer the more market loss is likely for these businesses that are currently keen to participate in the economic recovery in India.

1 Views