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Straight from the Specialists

Vodafone ruling will boost foreign investor confidence


(The views expressed in this column are the authors’ own and do not represent those of Reuters)

Amidst dwindling Indian governance on a variety of fronts, the Supreme Court has always been the differentiator. The court-monitored investigations into the 2G scam come to mind, which as most would agree, would prove the inflection point for India’s polity and governance.

On January 20, the Supreme Court delivered a thumping boost to its image as the saviour (of last resort) of the “rule of law” in this country in the high-profile Vodafone tax case.

The case involved the sale of shares in a Cayman Island company by the Hutchinson Group to Vodafone. All the constituent parties were outside India, except that the Cayman Company (whose shares were transferred) held, through a maze of holding companies outside India, a controlling stake in the Indian telecom operating company — now known as Vodafone India.

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