Docomo to get Rs 1200 crore from Tata Sons, orders Delhi High Court
Delhi High Court on Friday approved Japan's NTT Docomo and Tata Sons settlement on the payment of Rs 1200 crore. The Court held Japanese company to get the amount deposited by Tata Sons.
Approving the settlement, the court rejected the Reserve Bank of India's objection to the settlement, as reported by Bloomberg.
Tata Sons and Docomo had jointly applied to the Delhi High Court, requesting that it accept their agreed terms of settlement.
NTT Docomo had invested around $2.6 billion in 2009 to buy a 26.5% stake in Tata Teleservices. It however wanted to exit the market and sought $1.17 billion in compensation for its 2014 exit from India.
RBI was opposed to the payout under the existing structure and said that the exit clause in the joint venture agreement was illegal.
In June, the London Court of International Arbitration ordered Tata Sons to pay $1.17 billion to Docomo for breaching an agreement over wireless venture.
In February this year, Tata Sons in a statement had said, "Tata Sons is pleased to announce that in the interests of putting an end to a dispute that had arisen with NTT DOCOMO, Japan, and in the larger national interest of preserving a fair investment environment in India, it has reached an agreement with NTT DOCOMO on a joint approach to enable enforcement of the 22nd June, 2016, London Court of International Arbitration (LCIA) award."
It said, "The settlement terms, if approved by the Delhi High Court, clear the way for the $1.18 billion already deposited by Tata Sons with the Delhi High Court to be paid to DOCOMO, and would allow DOCOMO to transfer its shares in Tata Teleservices Limited."