Sibal favouring Vodafone, claims Arvind Kejriwal's APP

Aam Admi party chief Arvind Kejriwal and Supreme Court advocate Prashant Bhushan allege the move towards a settlement of the Vodafone dispute reeks of a conflict of interest ever since former telecom minister Kapil Sibal became the new law minister.

Also Read: Kejriwal targets Sibal over Vodafone tax issue
The press conference was a mishmash of several facts dating back to 2007. But the moot point remained that decision regarding the conciliation with Vodafone announced by Sibal indicates the government's desire to negotiate a settlement, reports CNBC-TV18's economic policy editor Siddharth Zarabi.
After Vodafone offered a settlement, the proposal was sent on March 5 by the finance ministry to the law ministry for its opinion. The law ministry, under Ashwani Kumar, viewed the offer as untenable and illegal because once an Act is passed by Parliament in reference to the Finance Bill which had made an amendment in this regard, little can be done outside the ambit of the Act.
Based on Attorney General Goolam Vahanvati’s fresh opinion formed on clarification provided by the finance ministry, Sibal acknowledged the possibility of a process of conciliation. However, he added that it was ultimately up to the Cabinet to decide on ta settlement.
Bhushan and Kejriwal accuse Sibal of impropriety based on details of the tax dispute in 2007 and allege that the Essar Group had received a payment equivalent of Rs 2,000 crore for a particular contractual obligation.
Meanwhile, Essar has rubbished Kejriwal's charges and in a statement the company said it had fully disclosed the pact with Hutchinson to all authorities in 2007. Essar also added that it does not have any continuing interest in the company.