Fereshte Sethna on the Vodafone case
Fereshte Sethna was part of the legal team that represented Vodafone Group Plc during its successful appeal in the Indian Supreme Court of a government tax demand. The apex court’s ruling in favor of Vodafone earlier this month spared the British telecommunications giant of having to pay a tax bill of more than $2 billon on the deal it struck in 2007 with Hong Kong’s Hutchison Whampoa to enter India. The decision, which said India doesn’t have authority to tax the deal because it was between offshore entities – a Dutch subsidiary of Vodafone and Cayman Islands subsidiary of Hutch – laid down some important long-term precedents for Indian tax law and provided more clarity for potential foreign investors.
Ms. Sethna answered some questions for India Real Time about the meaning and impact of the verdict: