Nokia’s efforts to sell its Chennai plant face another setback as tax authorities have insisted the company provide a guarantee of up to Rs 3,500 crore over an ongoing dispute before a freeze is lifted on assets.
The income-tax department filed the affidavit in the Delhi High Court a few days ago, said people with knowledge of the matter. The step effectively goes against an agreement between the two that proceeds from the factory’s sale would go into an escrow account pending a decision on the Rs 21,153-crore tax row.
The move comes as the government has been saying that all efforts were being made to get the factory sold
