Supreme Court today dismissed Nokia’s appeal challenging a lower court order over transferring ownership of its local mobile phone plant, which is the subject of a tax dispute, to Microsoft. The Supreme Court upheld a verdict by the Delhi High Court and ordered Nokia to give a guarantee for Rs 35 billion.
Nokia, which is selling its mobile phones business to Microsoft in a 7.2 billion deal, last month appealed to the Supreme Court saying the Delhi High Court had imposed “new conditions” over the transfer of the plant, after previously lifting a freeze on the assets.
The case, which has been ongoing for quite some time, came back into the limelight soon after Microsoft announced the acquisition of Nokia’s devices and services unit. Yesterday, the SC has ordered Nokia to submit a valuation report of its domestic entities to ensure sufficient funds to secure the interests of the Income Tax department.
The apex court added that the government would gain nothing by sending company officials to jail. This after, the IT department had moved the Supreme Court seeking to stop the transfer of Nokia’s Chennai plant assets to Microsoft pending resolution of a tax dispute, arguing that the company was being evasive about its valuation of the plant, according to the Financial Express.
