Vodafone says begins arbitration in India tax dispute

NEW DELHI Wed May 7, 2014 10:40am EDT

NEW DELHI May 7 (Reuters) - Vodafone Group Plc said on Wednesday it had begun an international investment arbitration against the Indian government in a more than $2 billion tax dispute, after the two sides failed to find a solution through talks.

Vodafone said it filed the arbitration on April 17. The company did not give details.

The long-running tax dispute is over Vodafone's acquisition of Indian mobile assets in 2007.

In 2012, India's Supreme Court ruled in favour of Vodafone saying the company was not liable to pay any tax on the deal. The Indian government later that year changed rules enabling it to tax already-concluded deals. (Reporting by Devidutta Tripathy; Editing by Sumeet Chatterjee)