I-T Probe into Kraft’s Cadbury Takeover

The income tax department following a Delhi High Court directive initiated an inquiry into Cadbury India's takeover by US-based Kraft Food Inc on 3 January 2011for alleged tax evasion and flouting of buyout norms. The court's direction came in response to a petition by Ved Prakash who alleged that the Indian exchequer suffered huge loss on account of tax evasion in Kraft's takeover of Cadbury.

Kraft Foods had acquired British candy maker Cadbury for $19.6 billion in February 2010. The petition moved Delhi High Court asking that the government to assess the tax liability in respect of the transaction as well as recover the loss. The petition made a reference to the UK based Vodafone's arm that has been asked by authorities to pay over Rs 11000 crore in taxes for buying Hong Kong-based Hutchison's telecom company.