The Delhi High court has accepted Nokia’s appeal to release its Chennai plant from authorities, after it was seized by them in a tax dispute, according to a recent report.
The court has asked Nokia to deposit $367.17 million in an escrow account, while the tax dispute will continue separately, the Reuters report said.
The Finnish telecom company has been embroiled in a tax dispute in India, and the seizure was a hurdle the came in the way of closing the sale of its mobile phone business to Microsoft, in a deal worth $7.4 billion.
Nokia India and Nokia Corporation owes Rs 21,153 (~$3.5 bn) crore as tax liability including penalty during a seven-year period from 2006-2013, according to a claim made by the Income Tax department to the Delhi High court.
Earlier, the Nokia tax dispute looked like it was closing to a settlement with the Finnish phone-maker willing to pay the Indian government Rs 2,250 cr (~$360 mn) in taxes as soon as it completes the Microsoft deal. This offer was recently turned down by the I-T department during the proceedings before the high court.