At a time when the Centre is working overtime to build bridges with aggrieved global investors,the growing list of notices at six and counting served by international investors invoking provisions of the numerous bilateral investment protection pacts signed by India could put the Government is a spot of bother. The fact that India has,in the past,lost the only such dispute that went on to the arbitration stage is among the reasons for the mounting worries. In its award dated September 30,2011 of the International Tribunal in the case between Australias White Industries Ltd and the Government of India (Ministry of Coal),under the Bilateral Investment Promotion and Protection Agreement (BIPA) between India and Australia,had gone against the Government of India. This is a case that dates back to a decade,when White Industries won a foreign arbitration against Coal India but was unsuccessful in enforcing the award till last year when it used the Indo-Australian bilateral investment protection treaty. Six notices have been served. Each of these (cases where notices have been served) is being looked at on a case-to-case basis, an official involved in the exercise said. The official added that BIPAs were intended to provide fair and equitable treatment to the investors of either country in the territory of the other country and include provisions for settlement of disputes between an investor and a contracting party shall,as far as possible,be settled amicably through negotiations between the parties to the dispute. In case a dispute is not settled amicably,a provision exists for arbitration, the official said. In case of Vodafones notice under the BIPA,the government,in its reply,has told the British telecom major that there is no cause of action for the company in the ongoing tax dispute with the Indian income tax authorities. According to foreign trade analysts,the fact that Indias gone on to sign bilateral pacts with a large number of countries,combined with the Government resorting to flawed policy measures and retrograde steps to shore up revenues,is a recipe for disaster. Till date,India has signed BIPAs with 82 countries, starting with the United Kingdom in 1994. Of these 82 countries,BIPAs with 72 countries have been enforced. Besides,India has signed 17 Free Trade Agreements,Comprehensive Economic Partnership Agreement (CEPA), Comprehensive Economic Cooperation Agreement (CECA) and Preferential Trade Agreements (PTAs). BILATERAL WORRIES Notices served by foreign investors against India under BIPAs and CECA * Devas Employees Mauritius Pvt Ltd,Mauritius under BIPA with Mauritius * Sistema Joint Stock Financial Corporation,Russia under BIPA between India and Russia * Telenor Asia Pte Ltd,Singapore under CECA between India and Singapore * Capital Global Limited and Kaif Investment Limited,both Mauritius based-investors in Loop Telecom Limited under BIPA with Mauritius * Vodafone International Holdings BV,the Netherlands,under BIPA with the Netherlands * The Childrens Investment Fund Management,United Kingdom under BIPA with the UK and Cyprus
