If my memory serves me right Vodafone bought its telecom business in India from Hutchison Whampoa, HW for $ 11.1 billion who in turn had bought it from Max Telecom for Rs. 5 billion which means that HW got 100 times the amount they paid. You would be expected to pay tax on such astronomical profits anywhere in the world. To prevent foreign companies from scarpering with the loot, as HW has done, the law in India obliges the buyer to deduct the tax amount from the sale price and deposit it with the tax authorities. It was incumbent upon Vodafone, therefore, to deduct the tax amount of $ 2.6 billion from the sale value of $ 11.1 billion and deposit it as tax and pay HW the remaining $ 8.6 billion. To say that the deal was conducted in Hong Kong is facetious. The business is based in India, the customers are all in India and all future profits will accrue in this country. So the tax on capital gains must also be paid here. To threaten us by saying that other foreign companies will be chary about doing business in India is insulting. No one invited Vodafone to invest in India and they have not done so out of altruism. If they cannot compete in the Indian market they should sell up and go home but pay all taxes they must. The fact is that Vodafone realises that it has been shafted by HW and knows that suing HW in Hong Kong will be fruitless. China is a lawless country and no court is going to favor a UK company over a Chinese one. So far telecom companies have managed to delay number portability by various stratagems but when this happens it will get really ugly. If Vodafone wants to stay it better gird its loins.