Vodafone on Friday dismissed an inquiry from the Indian authorities, who are seeking about $2bn in tax from the UK company following its $10.9bn takeover of Hutchison Essar, India’s fourth-largest mobile phone operator.

The dispute with India’s tax department is the latest complication since the hotly-contested auction of Hutch­ison Essar, which was re­named Vodafone Essar after Vodafone bought a controlling stake in the mobile operator in May.