Nokia to appear in India's top court on Monday to demand the return of its factory

Nokia to appear in India's top court on Monday to demand the return of its factory
You might recall that back in December, we told you about the tax dispute that Nokia was having with the Indian tax authorities relating to a manufacturing plant in the country. The factory is supposed to be turned over to Microsoft as part of the latter's $7 billion acquisition of Nokia's Devices and Services business.

After being seized by Indian authorities, the plant was expected to be returned to Nokia after the Finnish based handset manufacturer paid 22.50 billion rupees ($367.17 million USD) into an escrow account as requested by the Delhi High Court. But the court had added new conditions for the return of the factory, leading to Nokia's decision to escalate the legal fight.

Now the dispute moves to India's top court after Nokia appealed the High Court's ruling to the Indian Supreme Court. Since the factory is supposed to be turned over to Microsoft, the failure of the Delhi High Court to release the facility in return for the escrow payment as originally agreed to, could delay the closing of the deal although Nokia said last month that the dispute will not push back the date that the deal is finalized.

The court's website shows that Nokia is expected to plead its case on Monday. As per the usual workings of the court, we do not expect to hear a verdict on the same day that the case is heard. The original tax bill was for the amount of 20.8 billion rupees ($335 million USD), an amount that has ballooned up to $3.4 billion after penalties and interest.

source: Reuters



1. Miracles

Posts: 560; Member since: Aug 31, 2013

Pay up Nokia. Love your phones, but gotta pay em taxes.

4. tech2

Posts: 3487; Member since: Oct 26, 2012

ikr. They are not only paying taxes but are also threatening that 30,000 employees will be out of job. Pathetic, Nokia.

7. Skoms

Posts: 118; Member since: Feb 03, 2014

Will nokia microsoft avoid paying taxes?? It's disgusting, nokia microsoft avoid paying licenses to microsoft. Indian manufacturers have to pay to microsoft. It is anti-competitive. By then, no need to pay license to microsoft. You are not fair, microsoft. What are your right microsoft?

8. papss unregistered

How did I know you would be here mucking the comments up with your terrible English? this has NOTHING to do with M$ you window locker.. You must have a hard on for M$ with the way you drop their name in everything.

2. alterecho

Posts: 1106; Member since: Feb 23, 2012

The court should add another condition - 'Do not get bought by Microsoft'.

9. papss unregistered

Strange seeing you post moronic comments here too.. another fanboy that has a hard on for m$.. maybe you and your brother above you can hang out and talk sometime

10. alterecho

Posts: 1106; Member since: Feb 23, 2012

"a hard on for m$.." A hard clenched fist.

12. akki20892

Posts: 3902; Member since: Feb 04, 2013

Love to read your comments Lol.

3. toink unregistered

With that amount, they might as well setup a new factory elsewhere, like Vietnam or something.

13. grapeseed87

Posts: 123; Member since: Mar 13, 2013

They have already lost money in building that factory which if they lose to the govt. will go in an auction bid to an Indian manufacturer to build competitive devices anyways. They should have just paid the tax upfront which I believe they were trying to find a loophole out of. Also if they build devices elsewhere and try to ship them into India as an emerging market they will be charged a high import tax. Either way they do get the penalty and could have avoided this all from the start.

5. toink unregistered

With that amount, they'll probably save more money if they setup a new factory elsewhere, like Vietnam or something.

6. toink unregistered

Double post, sorry guys.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit for samples and additional information.