India’s Supreme Court on Friday ruled that telecoms group Vodafone will not be liable to pay more than RS13,500 crore ($2.7bn) in tax related to an acquisition five years ago.
Vodafone, which is the world’s largest mobile phone company, won a landmark tax dispute regarding an $11.5bn purchase of a 67 percent stake in mobile phone operator Hutchinson Essar.
The country’s highest court found that Indian tax officials did not have jurisdiction over a deal between two international companies, even with the assets located in India. The original agreement in 2007 was between Vodafone International Holdings, the Dutch subsidiary of Vodafone, and CGP Investments, a Cayman Islands-based company which holds assets in Hutchison.
