Bombay High Court orders rehearing in Volkswagen $1.4bn tax dispute
Volkswagen's $1.4 billion tax dispute is back in the spotlight after the Bombay High Court ordered a rehearing.
The previous panel didn't reach a verdict on time, so now a new group of judges will take over, more than a year after arguments wrapped up.
Indian tax authorities allege CKD mislabeling
Indian tax authorities say Volkswagen mislabeled imported car parts over a 12-year period, paying less tax by calling them individual parts instead of "completely knocked down" (CKD) units, which are taxed much higher (30% to 35%).
Volkswagen has defended its practice and denies owing the extra taxes.
Long-running case strains Volkswagen's India presence
This long-running case is putting more pressure on Volkswagen's already small presence in India.
The company has warned that drawn-out court battles could hurt its future here, and investors are worried about how long legal disputes can drag on in India.