According to a source familiar with the matter, the American social giant has sued the Indian government to challenge some of the orders it has received to take down certain websites.
According to the lawsuit, New Delhi has abused its power by ordering it to remove some of it's content.
In India, a key overseas market for the firm, it has been asked to take down hundreds of accounts, many of which were objected to because they denounced the Indian government's policies and Prime Minister Narendra Modi.
The lawsuit was reported by the news agency. A person who answered the phone declined to say anything.
Many of the challenges were fought back by the company. There is little to no room left for individual challenges under India's new IT rules.
The tension between the two was evident on May 24 last year, when Delhi police, controlled by India's central government, visited two offices ofTwitter in the national capital state of Delhi andGurugram in the neighboring state of Haryana to seek more information about the rationale to label.
The Delhi police went to the offices of the social networking site to serve a notice of inquiry after receiving a complaint about the classification of the spokesman's message. The police said that the replies from the managing director were very ambiguous.
The episode was described asintimidation by the social networking site.
The company is concerned about the use of intimidation tactics by the police in response to enforcement of our global Terms of Service as well as with core elements of the new IT Rules.
The managing director resigned from the company.
Tech giants have sued the Indian government before. The new regulations that could allow authorities to make people's private messages "traceable" was the subject of a lawsuit by the messaging service.
It is not clear if the lawsuit will affect the proposed acquisition by Musk. Musk wants the government to allow his company to sell and service imported cars first in India.