India's Supreme Court has asked Vodafone to pay $302 million to the Indian government as part of its plans to merge four of its operating businesses ahead of a public listing in India.
Vodafone is contesting charges of around $1.1 billion that the government is seeking to allow the merger of the businesses.
The court has now asked Vodafone to pay $402 million as an interim payment, Reutersreported, with the final amount due contingent on the outcome of Vodafone's appeal.
According to the report, the government will approve the merger as soon as the $302 million interim payment has been received, which will pave the way for the planned IPO of Vodafone India.
Vodafone has a history of disputes with the Indian government, including its high-profile tax battles related to its acquisition of its Indian unit from Hutchison in terms of both the transfer pricing and the capital gains of the purchase.
The long dispute involved instances including the government retroactively changing the nation's tax law to close a loophole that helped Vodafone win an appeal over a $2.5 billion tax bill.