SC permits Vodafone wire transfer Rs2,500-crore deposit; next hearing on 19 July
26 Nov 2010
The Supreme Court today granted a plea by Vodafone international holdings BV Ltd to allow the company wire transfer the deposit amount of Rs2,500 crore to the SC registry instead of presenting a bank draft as it would save the company huge bank fees.
The SC also posted further hearing in the Rs11,218-crore tax liability case against the British telecom firm to 19 July 2011. Vodafone is facing the tax liability on its 2007 transaction of buying out the shares and operations of Hutchison Wampoa in Hutchinson Essar Ltd.
Wire transfer or electronic transfer of funds from one person or institution (entity) to another helps save huge fee payable through other modes of payment like draft.
The SC bench comprising Chief Justice SH Kapadia, Justice KS Radhakrishnan and Justice Swatanter Kumar also held that if Vodafone wins the case, the income tax department will "return" the amount with interest.
Senior counsels Harish Salve and Abhishek Singhvi who represented Vodafone International Holdings made the plea as they submitted that the money would come through international transactions.
"We need to transfer this amount (Rs2,500 crore) directly from bank to the Supreme Court registry. It would save us a lot of money. If we get a bank draft it would be price over for us," Salve said.
