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Chennai plant transfer to MS stalled again. Nokia appeals to the Supreme court.

nokia logo NPUAnd the uncertainty over Chennai plant transfer to Microsoft is back with Delhi High court imposing a new condition and practically stalling the transfer. In its order last week, Delhi High Court has asked Nokia to give an undertaking, which will come into play whenever the Income Tax department raises demand in future. This will make Nokia meet the demand without having the right to use the legal remedies. Nokia has now appealed to India’s highest court for relief.

Interim CEO Risto Siilasmaa is in India and has met commerce and industry minister Anand Sharma in this regard.

Nokia’s chairman and interim CEO Risto Siilasmaa said the company was trying its best to ensure that it keeps the plant running. “If we are not allowed to transfer (the unit to Micosoft), we will have a factory, but we will not have a business.

And if we don’t have a business, we can’t manufacture anything in the factory. And that would be detrimental to our employees and we care deeply for our employees.

So we are trying to explore all possible means of finding a solution to to this issue.

A Nokia global spokesperson said,
“The use of such a practice against international standards can poison the investment climate and endanger jobs. We cannot agree to such an undertaking. We will continue to defend ourselves vigorously against any arbitrary tax demand and collection attempts of the tax authorities,” he said.

“The court has created greater uncertainty over this possibility by imposing these new conditions, based on the request of the income-tax authorities, which go against the spirit of its December 12 ruling and come only weeks before the expected closing of the global transaction with Microsoft in Q1 2014,” Nokia said in a statement.

Amid the reports of a near-collapse of long-running talks between Vodafone and Government of India on similar Tax dispute, it is distressing to see India losing its sheen in eye of Global investors.
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Nayan
Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long. He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing. Write to him at Email: [email protected]
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  • Svedu

    This is from Nokia quarterly report from 23:th january:

    “Nokia received a ruling from the Delhi High Court in December for the release of its Indian assets, including the Chennai factory, which had been frozen by the Indian tax authorities related to a tax dispute that started in early 2013. While the tax dispute is still ongoing, the ruling allows Nokia to proceed with the planned transfer of its Indian assets to Microsoft as part of the global transaction.”

    I dont understand. Did India authorithies change their mind, or is Nokia lying in the report?

  • troll

    Walmart also has stopped plans for India which would have driven many manufacturing jobs. Its sad that government shakedown
    in any country hurt the people of the country the most. For Nokia, it may have no option but to walk away. The timing of this smells like U.S. government interference with its Google roots wrapped around it.

  • eeteet

    That is unbelievable that indian taxman tries change rules afterwards.

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