Vodafone India has stated that the arbitration process on the Rs 200 billion tax dispute is likely to be delayed as two arbitrators of the three-member panel have resigned from the process.

The Indian government had appointed former chief justice of India R.C. Lahoti as an arbitrator in the dispute but he resigned in May 2015. Meanwhile the third neutral arbitrator, Judge Abdulqawi Ahmed Yusuf of the International Court of Justice declined to be part of the three-member panel. Vodafone’s nominee Yves Fortier of Canada, however, continues to be on the panel. Vodafone has further stated that if there is no subsequent agreement on appointment of the chairman, the International Court of Justice will appoint the third arbitrator.

The dispute is over tax liability arising out of Vodafone’s 2007 purchase of Hutchison Whampoa Limited’s Indian assets. Earlier in June 2013, the government had approved the conciliation with Vodafone in a bid to resolve the capital gains tax dispute. However, following an international arbitration notice by Vodafone, the then government in May 2014 approved the withdrawal of a conciliation offer.