If reports are to be believed, India’s government has been approached by its Dutch counterpart on behalf of Vodafone Group Plc to settle a three-year dispute involving a tax claim of more than $2.5 billion.

According to reports, Netherlands has written to India asking it to consider an alternate dispute resolution that will run parallel to the ongoing court process through a so-called Mutual Agreement Procedure (MAP).

According to sources, India would examine the request and take a decision in accordance with the provisions of the India-Netherlands double tax avoidance agreement (DTAA).

MAP is an alternate process of dispute resolution, and is an option available to a taxpayer in addition to and concurrent with the appellate process. However, under MAP, once the proceedings are initiated, it is possible to obtain a stay on the tax demand provided one gives a bank guarantee.