British mobile phone operator Vodafone (VOD) was ordered by an Indian court to pay $2.6 billion in taxes on a 2007 transaction that gave it a major presence in the country's mobile phone market.
The court ruled that Vodafone was liable for Indian taxes on the deal, which involved Vodafone buying a majority stake in Cayman Islands-based CGP Investments, which held telecommunications assets in India, BBC News reported. The deal was worth $11.1 billion.
Vodafone had argued that since the deal was between non-Indian entities, they shouldn't have to pay Indian taxes.
Vodafone may appeal the decision, which leaves the company with a 120 billion rupees ($2.6 billion) tax bill.