India has appealed against the Vodafone tax arbitral award before a Singapore court, government sources confirmed. The tax dispute involves an amount of approximately $2 billion.

The case has its roots in 2007, when Vodafone bought Hutchison's India assets for $11 billion in an off-shore deal. The Indian Tax department wanted Vodafone to pay taxes on the deal and the company moved to the Supreme Court, after an initial setback at the Bombay High Court. In January 2012, the apex court ruled in favour of Vodafone and confirmed that such transfers were not within the Indian tax remit. However, the government introduced an amendment to the Income Tax Act, 1961, through Finance Act, 2012, to allow the tax.

Following the amendment and action by the tax authorities, the dispute moved to the international level when Vodafone commenced arbitration proceedings and defended its side. In September, the Hague ruled in favour of Vodafone.