The Delhi High Court on Friday approved a settlement of $1.18 billion between Tata Sons and Japanese telecom major NTT Docomo, allowing India’s oldest industrial conglomerate to buyout Japanese firm’s stake in the telecom joint venture.
The court ended one of the long-pending corporate cross-border disputes in India after it rejected the Reserve Bank of India’s (RBI) intervention plea which opposed the settlement citing violation of Foreign Exchange Management Act (FEMA) of 1999, thereby warding off foreign investors concerns about exiting loss-making ventures in the country.
Under the ruling, NTT Docomo will receive $1.17 billion deposited by Tata Sons with the Delhi High Court, according an order by Justice S. Murlidhar.
