Former ASG files PIL: ‘Stunning & brazen’ Vodafone, pay your $4bn (?) retrospective taxes now

Former additional solicitor general and senior advocate Bishwajit Bhattacharyya has filed a public interest litigation (PIL) in the Supreme Court, seeking to get India to pay up its tax bill under a retrospective amendment passed in 2012 by the then-government, reported the Economic Times.

Bhattacharyya in a column in The Statesman on 5 June 2014 had written that allowing Vodafone to get away without paying the Rs 20,000 crore tax demand, including penalty and interest, would be a “subversion of rule of law”. The amount could well be $4bn soon if “the rupee continues to induce bullish sentiments”, he wrote, and Vodafone’s “inaction” in paying the bill for 27 months has been “stunning and brazen”.

The government had retrospectively amended India’s tax laws after Vodafone won exemption from paying the tax following its acquisition of Hutchison’s India assets.

Last month Vodafone and the government began embarking on settling the dispute in international arbitration.

Comments

Guest 27 Jun 2014, 14:42
+12 -9
The ex-ASG is wrong. Let him check the provisions of Indian tax laws and let him see how many tax clauses and tax rates are obnoxiously penal. In this country, you punish taxpayers in the name of levying taxes. There is no accountability to the obscure circulars and exemptions granted to favor the vested interests. With due respect to the ex-ASG, it is the retrospective amendment which was stunning and brazen and not the SC verdict in favor of Vodafone. The ex-ASG should know that international arbitration trends in investment protection treaty cases are such that this will surely go against India.

Dr. Ravindran Pranatharthy
Advocate
Wrong 30 Jun 2014, 04:02
+0 -4
Clearly the reader is unaware of the legal provisions.
"Dura lex sed lex" - the law is hard, but it is the law.
Guest 30 Jun 2014, 14:12
+3 -0
your comment about me supposedly not knowing the legal provisions has to be dismissed out of court. Its laughable.
Guest 28 Jun 2014, 16:32
+3 -5
This PIL should be dismissed with costs.
Swapnendu Mishra , Advocate 28 Jun 2014, 17:29
+6 -3
It was unfortunate that the Bombay High Court Judgment was overruled on grounds, not expressly stated under the Law . The sole reason was that " Supreme Court can make Law" . If the appellant had a right to approach SC, so also Mr Bhattacharya . Let the SC take a stand on the issue raised . Let the law takes its own course . Those who are not aware of the legal acumen of Mr Bhattacharya can go through some of the landmark judgment which are truly " LANDMARK" . Swapnendu Mishra .
A big Venezuela/Colombia.. 29 Jun 2014, 05:07
+5 -5
That is what most of the biz world views India to be... Do Anything and get away with Anything. Pepsi/Coke groundwater table, Amway marketing, Levers biz practices, Enron-Dabhol, Union Carbide, Motta-bhai and Chota-bhai, Vedanta, Dempo/Salgaocar, the Sun TV etc Group, the brazen King-fisher - you name the geography, you'll see one or more such.

Ably supported by penguins of varying size and stature of course!
Dazed and Confused 30 Jun 2014, 05:27
+6 -3
Your list contains wildly disparate cases that have little to do with each other except, presumably, that you consider them perversions of justice.

Let's start with a government that is unhappy with a Supreme Court decision and decides to retroactively amend a fundamental economic law that has stood for more than 50 years. Their defense: our former colonial masters once retroactively amended some minor partnership tax interpretation decades ago. The world rightly thinks that a country that will retroactively amend its own 50-year old tax law is not to be trusted. The bulk of the matters you mash together are simply additional symptoms of this madness and lack of trustworthiness. The Amway arrest, in particular, is completely nuts.

If we could retroactively deny the bar application of any advocate who would make a case for retrospective amendment we would be better off.