Tatas have made a new appeal to its joint venture partner NTT DoCoMo to jointly engage with the authorities to reach an amicable resolution in the ongoing tussle.
“Since a judicial process is underway, we would not like to comment further on the legal case. We, however, would like to make a renewed appeal to our JV partner to join us in engaging with the authorities to reach an amicable resolution of this issue,” Tata Sons said in a statement issued to press late Wednesday evening.
The Tata group said it was yet to examine Docomo’s response filed in the court.
“We reiterate our earlier position that enforcement of the award in the absence of RBI’s approval would be violative of FEMA and therefore any action towards implementing the award – whether in India or overseas – would be unlawful and against public policy,” it said.
The parties have presented their respective position before the Delhi High Court and it is now for the court to take a final view in this matter.
The amount Docomo claims under the award is already fully secured after Tata voluntarily deposited that amount (rupee equivalent of $1.17 billion) with the court, it added.
In 2009, NTT DoCoMo acquired a 26.5 per cent stake in Tata Teleservices. In April 2014, NTT DoCoMo announced plans to sell its entire stake in TTSL, exiting India five years after entering the country. The exit came after the Indian company failed to achieve certain performance targets.
Under the terms of the shareholder agreement, Tata Sons had to find a buyer by December 2014, failing which it had to buy the DoCoMo stake. But a RBI regulation that prohibits sale of equity at a pre-determined price is coming in the way of settling this dispute.