The Delhi High Court in India has finally allowed Nokia India to sell its Chennai manufacturing unit to Microsoft. If the court had ruled otherwise, Nokia may have had to exclude Indian assets from the acquisition deal, forcing the closure of the factory.
Set up in 2006, the Chennai factory is one of their largest manufacturing units employing 5800 people and producing 200 million phones a year.
Nokia India has been in tax disputes in India with the Income Tax Department in recent past with a tax demand was around INR 200 million which inflated to over INR 2 billion due to penalties. The demand pertains to royalty payments by Nokia India to the parent company, Nokia Finland.
After the decision today, Nokia is free to sell the factory to Microsoft as part of their $7.2 billion sale of its global mobile phone business. The court has asked Nokia India to deposit INR 225 million ($367.17 million) value assets as security in an escrow account as it awaits the resolution of the case. If the company loses the case, it might be required to pay a fine of $3.4 billion for non-payment of tax and interest.
Nokia has shared the following statement on the Delhi High Court decision via email.
Source: Live Mint; Image Credit: Nokia
Get the Windows Central Newsletter
All the latest news, reviews, and guides for Windows and Xbox diehards.