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Nokia has dashed off another letter to the Prime Minister and senior government officials, seeking their immediate intervention in de-freezing the Chennai factory. This follows a move by the Income-Tax Department through a plea in court seeking to make Nokia Corporation liable for payments of of up to ₹3,500 crore, towards the tax liabilities of Nokia India, as a precondition to de-freeze assets.
While Nokia India is prepared to put the money received from the sale of the factory in an escrow account, it has refused to make its parent Nokia Corp party to the case.
The tax liability issue is before the Delhi High Court, with the next hearing slated for April 6. This comes at a time when a number of potential buyers, including the Essar Group, have evinced interest in the Chennai factory.
According to multiple sources, Nokia has taken the view that if the I-T authorities’ request is accepted, it will lead to several more rounds of legal processes, delaying the sale further. Discussions with a prospective buyer are at an advanced stage and any delays could scare away the buyer. When contacted, Nokia refused to comment on the matter. The letter also states that efforts to “revive manufacturing operations are in imminent danger of irretrievable break-down.”
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