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Tata To Deposit $1.2 Billion DoCoMo Arbitration Award With Delhi Court

Tata Sons also rejected reports suggesting the possibility of its assets in Britain being seized as a result of the ruling

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Tata Sons said it expected to deposit $1.2 billion with the Delhi High Court on Friday, the money it was ordered to pay Japan's NTT DoCoMo Inc by an international arbitration court last month.

Tata Sons also rejected reports suggesting the possibility of its UK assets being seized as a result of the ruling.

In 2009, DoCoMo bought a 26.5 per cent stake in Tata Teleservices Ltd but announced plans in 2014 to exit the venture, which struggled to boost subscribers as quickly as its peers.

DoCoMo then asked Tata to find a buyer for its stake at a predetermined price. Tata failed to find a buyer and instead offered to buy the stake itself.

India's central bank, however, rejected Tata's offer, saying a rule change in the previous year prevented foreign investors from selling stakes in Indian firms at a predetermined price.

India plans to block Tata's payment of the arbitration award to avoid setting a precedent as at least 10 other companies have sought waivers for similar deals, Bloomberg reported on Thursday, citing people familiar with the matter.

The Delhi high court has given the companies until August 30 to resolve the issue.

(Reuters)


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