15 May 2013

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AAP Targets Kapil Sibal Vodafone tax case out of court settlement

AAP Targets Kapil Sibal Vodafone tax case out of court settlement

Aam Aadmi Party (AAP) leader Arvind Kejriwal targeted Law Minister Kapil Sibal over the reversal of his predecessor’s decision on the Vodafone tax liability issue.

Vodafone is facing the tax liability of over Rs 11,217 crore for purchase of Hong Kong-based Hutchison Whampoa's stake in Indian telecom business Hutchison Essar in 2007.

Vodafone tax liability = 11,000 Crore

Government Plan = Out of Court Settlement

The tax liability arose due to amending of the Income Tax Act, 1961 with retrospective effect during the tenure of the then Finance Minister Pranab Mukherjee to undo the Supreme Court judgement that was ruled in favor of Vodafone.

The loophole was filled by the Finance Minister.

The previous law minister, Ashwani Kumar, had rejected the finance ministry’s plea for conciliation with Vodafone, terming it illegal. Kumar’s view on the file stated: “At the inception, the negotiation is illegal.”
Attorney General GE Vahanvati too had advised against a compromise and had said Vodafone must pay its dues.

Now Mr. Kapil Sibal is a Law Minister and Sibal is not against Finance Ministry's proposal for conciliation with Vodafone
Newly appointed Law Minister Kapil Sibal has overturned his predecessor Ashwani Kumar's decision

Now Attorney General has given a fresh opinion saying Vodafone's conciliation offer is legally tenable.

Earlier this year, the Law Ministry, under Mr. Kumar, had rejected the Finance Ministry's proposal for conciliation with Vodafone, saying it was illegal. 

Arvind Kejriwal told to media that Vodafone is expecting out-of-court settlement from Sibal.
We have learnt that Kapil Sibal's son is Hutchinson's lawyer.

AK ask the question that the question arises whether a portion of Rs 2,000 crore has gone to Sibal,”

Media reported that Kapil Sibals son Amit was a lawyer for Vodafone between 2007 and 2009

Do you think out of court settlement will create chances or will give opportunities to do corruption?

Out of Court Settlement happens behind closed door and it is not possible for common Indians to know what happened behind the doors

Reality views by sm –

Wednesday, May 15, 2013

Tags – Kapil Sibal Vodafone