To Nokia’s relief, the Delhi High court today has finally given permission to the Finnish company to sells its Chennai-based phone-making factory to Microsoft, Reuters reports. It is one of Nokia’s biggest phone manufacturing units, and was recently raided by Indian Income Tax officials for tax evasion.
Nokia will still be scanned under the tax dispute in a separate case, this ruling will only allow the company to transfer this property to Microsoft after it pays Rs 2,250 crore ($367.17 million) to the government in an escrow account in lieu of the permissions. However, if the company loses the case, it might as well require to pay a fine of $3.4 billion for non-payment of tax and interest.
Today was the deadline for Nokia to proceed with the transfer of the manufacturing plant to Microsoft, which required all disputes to be resolved before the transfer. Had this not happened Nokia would have to become a contract manufacturer for Microsoft after the latter acquires Nokia’s mobile devices business in a deal worth $7.4 billion.