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Vodafone tax row: Indian court demands 'deposit' on sum

16 November 2010 Last updated at 00:22 GMT

An Indian court has ordered Vodafone to pay a deposit on a 120bn rupees ($2.6bn; £1.7bn) tax bill while it appeals against the charge.

The mobile phone company has been told it must pay $550m within three weeks, with an additional guarantee sum in eight weeks.

Vodafone says it does not believe it is liable for tax on its purchase of a majority stake in local network Hutchison Telecommunications.

Supriya Menon reports from Mumbai.