Vodafone may re-start negotiations with the Government to reach an out-of-court settlement to the ₹20,000-crore tax dispute.
This follows meetings between Vodafone’s Group Head for External Affairs, Mathew Kirk, and top officials in the Finance Ministry, including Finance Secretary Arvind Mayaram and Revenue Secretary Rajiv Takru.
While Vodafone declined to comment on the outcome of the meetings, one Government official told
“I got a sense that they want to settle the matter,” the official said.
During the meeting, the British telecom company told the newly-elected Government that it was prepared to invest more here, if given a favourable regulatory environment.
The erstwhile UPA Government had decided to end the negotiations after Vodafone sent a notice for arbitration under the Bilateral Investment Promotion and Protection Agreement (BIPA). After the meetings on Friday, senior officials said that though the Government will have to appoint an Arbitrator by June 15, both the parties will try to end the dispute out of court.
“They (Vodafone) are very enthused by the positive attitude of the new Government. They are very happy with their operations in the country. They say their operations are very profitable,” Mayaram said.
On Tuesday, Telecom and Law Minister Ravi Shankar Prasad had indicated that the Modi Government was prepared to re-look the Vodafone matter.
“Our (BJP) manifesto has been very specific that we want a stable regime where those who invest in India may not have to face uncertainty,” he had said.
The dispute arose due to the Retrospective Amendment to the Income Tax Act by the previous Government.
Early this month, Vodafone India announced that it has earmarked a capital expenditure of ₹7,000 crore for the next two-three years.