New Delhi: Tata Sons Ltd, the promoter of major operating Tata companies, said on Friday that it had deposited the $1.17 billion that a UK arbitration court had awarded NTT DoCoMo in a fixed deposit favouring the Delhi high court registrar. Tata Sons also rejected reports suggesting the possibility of its UK assets being seized as a result of the ruling.
In 2009, DoCoMo bought a 26.5 per cent stake in Tata Teleservices Ltd but announced plans in 2014 to exit the venture, which struggled to boost subscribers as quickly as its peers. DoCoMo then asked Tata to find a buyer for its stake at a pre-determined price. Tata failed to find a buyer and instead offered to buy the stake itself.
The Reserve Bank of India, however, rejected Tata's offer, saying a rule change in the previous year prevented foreign investors from selling stakes in Indian firms at a pre-determined price. India plans to block Tata's payment of the arbitration award to avoid setting a precedent as at least 10 other companies have sought waivers for similar deals, Bloomberg reported on Thursday, citing people familiar with the matter. The Delhi High Court has given the companies until August 30 to resolve the issue.