International arbitration panel rules in favour of Vodafone in Indian tax case

According to Reuters, which cited two sources with direct knowledge of the matter, the judges found that the Indian government's imposition of a tax liability on the telecommunications giant breached the investment treaty between India and the Netherlands.

India had claimed approximately $3.79b from Vodafone, including $2bn in taxes, on top of accrued interest and penalties.

New Delhi had other such outstanding cases against over a dozen other companies, including Cairn Energy.

India's Supreme Court had already found in favour of Vodafone in 2012 but the country's government later changed rules to be able to impose taxes on takeover deals, such as the 2007 acquisition of Indian mobile assets by Vodafone.