Thursday, 12 December 2013

India to allow Nokia to transfer Chennai factory to Microsoft


Credit: Reuters/Sari Gustafsson/Lehtikuva


The flagship store of Finnish mobile phone manufacturer Nokia is pictured in Helsinki September 7, 2012.


The Chennai plant is one of Nokia's biggest phone-making factories. Nokia appealed the seizure and has been trying to end the dispute ahead of the closure of the 5.4 billion euro ($7.4 billion) Microsoft deal.


The court asked the Finnish company to deposit 22.50 billion rupees ($367.17 million) in an escrow account, while the tax demand case will continue separately.


In March, Nokia was served with a tax demand of about 20.8 billion rupees ($340.45 million) for five fiscal years starting from 2006-07, according to a March 22 notice on the Delhi High Court website.


(Reporting by Nigam Prusty; Writing by Sumeet Chatterjee; Editing by Tony Munroe)


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