Nokia’s battle with the Indian government over the sale of their Chennai factories to Microsoft has taken a turn for the worst, as the Supreme Court dismissed Nokia’s appeal against the government’s demand that on top of a USD 375 million deposit Nokia also makes a USD 572 million deposit to enable to the sale to go ahead.
"The decision means that the case now reverts to the February 5 Delhi High Court ruling on the asset transfer," Nokia said in a statement reported by the Economic Times of India.
Nokia’s solicitors has refused to comply with this demand.
Nokia India’s counsel Vikas Srivastava dared the I-T department to attach all of the company’s assets and sell them to meet any anticipated tax liability or allow the deal to go through.
"We can’t generate Rs 20,000 crore. You can’t ask the parent company to pay. Please attach my properties and sell," Srivastava said.
8000 manufacturing jobs in India are at stake, but the government is insistent Nokia owes a lot more than they are willing to pay.
In a statement Nokia said that it "regrets" the anxiety the court case has caused to its employees.