Tata-NTT Docomo case: RBI approaches Delhi high Court to explain its position

In an interesting turn of events, the Reserve Bank of India has approached the Delhi High Court on Wednesday seeking to be heard independently in Tata Sons vs NTT Docomo case, where the latter has sought implementation of a $1.2-billion arbitral award that it had won against the Tata Group.

tower-india-5G

The RBI has requested the Delhi High Court to file an intervention application to explain its position on the international arbitration award that went against Tata Sons.

Reports said that NTT DoCoMo opposed the RBI’s representation in the matter.

Both the RBI and the Japanese have now been asked by the Delhi High Court to file their stances in writing and adjourned the matter to December 1.

RBI is expected to file an application explaining why foreign currency regulation comprises national policy and why exceptions on the fair price regulation on share sale cannot be afforded, media reports said.

The London Court of International Arbitration (LCIA) had made the award in favour of Docomo for Tata’s alleged breach of an agreement over their telecom joint venture (JV), Tata Teleservices Ltd (TTSL).

In November 2009, Docomo had acquired 26.5 per cent stake in TTSL for about Rs 12,740 crore. The two had also agreed that in case Docomo exits the venture within five years, it will be paid a minimum 50 per cent of the acquisition price.

Under the shareholding agreement between the two, Tata was obligated to find a buyer for Docomo’s shares in TTSL if the Japanese company exited, the condition the Indian company is alleged to have breached.

As per Tata, when it asked for RBI’s approval for payment of the damages, the central bank of the country had said the option was not valid and any payment would have to be made at fair market value.

Docomo had then moved Delhi High Court for enforcement of the award.

Reported By

Leave a Reply

10 Comments on "Tata-NTT Docomo case: RBI approaches Delhi high Court to explain its position"

 

Sort by:   newest | oldest
DUANE
October 8, 2016 4:20 pm 4:20 PM

Sooner that Tata gives up the license and throws in the towel, the better it will be for India. All along, Tata has been providing good services in CDMA which, for reasons best known to it, we’re restricted to Tata to Tata calling uses by cab drivers and few corporate. Then Docomo came along and grand schemes like 1p/sec followed which helped it get into the market. Why didn’t make leadership follow. Guess that. Always remain a well guarded secret. Rip, Tata Docomo, the end of a partnership is near.

SANJAY
October 7, 2016 2:11 pm 2:11 PM

It is better for INDIA.

Ashish
October 7, 2016 12:00 pm 12:00 PM

They should pay docomo.

Kaushik
October 7, 2016 12:57 pm 12:57 PM

Tatas have intent to pay but GoI has been blocking this transaction as it claims that the agreement clause for return of invested equity was not legally valid…..

NMLl
October 7, 2016 1:58 pm 1:58 PM

Nonsense. Tatas dont want to pay anything, and they are hiding behind a regulation that the govt made over a separate issue to refuse to honour their agreeement.

Shayan
October 12, 2016 4:26 pm 4:26 PM

TATA has already deposited said money in Delhi court, but GoI and RBI guidelines are stopping to transfer. Now TATA proactively approached Delhi court to allow transferring funds to DOCOMO, that’s why RBI entering in to prospect.

DUANE
October 8, 2016 4:21 pm 4:21 PM

Sooner or later they will have to cough up.

Kaushik
October 7, 2016 2:23 pm 2:23 PM

Tatas are making a loss of 60 crore per day on interest over the 1.17 bln USD deposited with Delhi HC. Do you think they like to bleed money?

DUANE
October 8, 2016 4:21 pm 4:21 PM

Dada, don’t throw figures around arbitrarily!

Kaushik
October 9, 2016 12:53 am 12:53 AM

It’s reported, bhai. Didn’t throw an arbitary value there.

wpDiscuz