New Delhi: Tata Sons on Friday said the Delhi High Court upholding the US $1.18 billion award to Japan’s DoCoMo will facilitate the payout and allow it to acquire the latter’s 26% stake in joint venture Tata Teleservices.
The high court on Friday rejected the Reserve Bank of India’s objections in the Tata-DoCoMo case, clearing the decks for the Tatas to pay over US $1.1 billion to the Japanese firm.
“Today’s order entails Tata Sons and its nominees remitting the US $1.18 billion, already deposited with the Registrar of the Delhi High Court, to DoCoMO, and DoCoMO transferring all its shares in Tata Teleservices,” Tata Sons said in a statement.
Earlier, NTT DoCoMo expressed hope that the RBI will not create any more hurdle in Tata Group making the said payment.
Tata Sons further said it “welcomes” the order allowing the two companies to implement the London Court of International Arbitration (LCIA) Award dated June 2016.
“The court allowed both the enforcement of the award and implementation of the consent terms between the two entities.
Tata Sons and NTT DoCoMo are taking further steps in terms of the order,” the Tatas’ statement said.
DoCoMo said the company considers Friday’s verdict to be of “huge” significance for foreign investments in India, as it showed “that the Indian Courts will recognise their international obligations and enforce an award within a matter of months”.
“We hope and expect that the RBI will not seek to delay final resolution by, for example, lodging an appeal against this very clear decision,” DoCoMo sources told.