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Vodafone may cite breach of treaty

Britain's Vodafone Group could invoke a little-known investment pact between India and the Netherlands that will allow it to claim back taxes it may be forced to pay authorities once Parliament clears a new legislation to tax past transactions. Offering for the first time a peek into the strategy the world's biggest mobile operator could adopt in case it is forced to stump up some $2.3 billion (Rs 12,000 crore) in taxes, a person familiar with Vodafone's thinking said it could bring a counterclaim against the Indian government by invoking the Bilateral Investment Treaty between India and the Netherlands.

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