Some of the world's most closely watched investment arbitrations have involved India. For foreign investors and Indian businesses alike, they show both the power and the limits of treaty protection.
Cairn Energy and Vodafone: the retrospective tax cases
In 2012 India amended its Income-tax Act with retrospective effect, bringing offshore share transfers into the tax net. Two investors went to arbitration under bilateral investment treaties. Vodafone International Holdings won before a Permanent Court of Arbitration tribunal in September 2020 under the India-Netherlands BIT, and Cairn Energy and Cairn UK Holdings won in December 2020 under the India-UK BIT, in each case on the basis that the tax demand breached fair and equitable treatment. India challenged the awards in the seat courts. Cairn then sought enforcement in several countries, including the United States and France, to attach Indian state assets. India later passed the Taxation Laws (Amendment) Act, 2021 to end retrospective demands of this kind.
Devas Multimedia v. Antrix
Devas and its investors obtained awards after Antrix Corporation, a company of the Indian space sector, terminated a satellite spectrum agreement in 2011 citing force majeure. The Indian government alleged fraud, and the NCLT ordered winding up of Devas. Litigation spread across India and abroad, including an attempt to seize assets linked to Air India. It illustrates that an award in hand can still meet years of resistance in the enforcement forum.
Reliance, Vedanta and other disputes
Private champions also arbitrate against the state under production sharing contracts. A long-running arbitration involving Reliance Industries and a Shell subsidiary over offshore gas development produced rulings both ways, and the Supreme Court has enforced a UNCITRAL award in favour of a Vedanta subsidiary and its partners.
Lessons for investors
- Structure the investment through a jurisdiction with a BIT in force with India before a dispute arises.
- Note that India terminated many older BITs and now uses a 2016 Model BIT with narrower protections.
- Document the investment and any government assurances carefully.
- Plan for enforcement early, including where sovereign or state-owned assets sit.
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This article is for general information only and is not legal advice. Law and procedure change; please verify the current position for your specific case. Last reviewed: November 2026.