MUMBAI: Indian authorities have frozen some of Finnish telecom giant Nokia’s assets, the company said yesterday, amid a Rs20bn ($321m) tax dispute with the New Delhi government.
Tax authorities froze Nokia’s bank accounts as well as fixed assets, such as buildings, last week, forcing the company to head to the High Court which ordered some of them released, Nokia said in a statement.
Nokia said it has regained access to its bank accounts but some fixed assets remain frozen. It was unclear whether one of its biggest plants world-wide, located in the southern Indian city of Chennai, was targeted in the action.
Nokia is among a string of multinationals to have become embroiled in tax disputes in India, including Cadbury, Royal Dutch Shell and Vodafone.
“Late last week, the Delhi High Court ruled in Nokia’s favour in a case where the Indian tax authorities froze some of Nokia’s assets for potential claims that hadn’t even been raised against the company yet,” said a statement from Nokia yesterday.
“We are now working closely with the tax authorities to ensure that the parties will find a comprehensive solution to the remaining open issues, and discussions have been constructive,” it said.
The company does not believe the assets freeze will affect a $7.2bn global deal with Microsoft, which has agreed to take over Nokia’s handset business, according to local media reports.
However, Nokia, in a separate email, declined to comment on the deal.
AFP
