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Volkswagen has filed a lawsuit against Indian authorities, challenging a massive $1.4 billion tax demand. The company argues that the demand contradicts India's import tax rules for car parts and could negatively impact its business plans.

Volkswagen argues that the tax evasion notice it received in September last year has dealt a blow to the Modi government’s "Ease of Doing Business" campaign

Volkswagen's unit, Skoda Auto Volkswagen India, also told the court that the tax dispute puts at risk its investments of $1.5 billion in India.