MUMBAI: Ending the two-year-old dispute, Tata Sons paid $1.2 billion to Japanese firm NTT DoCoMo, which exited the Indian telecom joint venture. The amount includes the arbitration award, interest earned and other costs awarded.
In a statement on its website, NTT DoCoMo said it has “received from Tata Son's payment of the award amount in accordance with the High Court of Delhi’s decision regarding DOCOMO’s stake in Tata Teleservices Ltd”.
Concurrent with the receipt of the amount, all shares in TTSL held by DoCoMo have been transferred to Tata Sons and companies designated by Tata Sons, it added.
In February, Tata Sons had said it had reached an agreement with NTT DoCoMo “on a joint approach to enable enforcement” of a compensation award granted by the London Court of International Arbitration in 2016 in favour of the Japanese company.
However, RBI objected to the transfer, which was subsequently rejected by the Delhi High Court in April, thus allowing Tatas to honour the payment of $1.18 billion.
It was in November 2009 that DoCoMo acquired a 26.5 per cent stake in Tata Teleservices for roughly Rs 12,740 crore, with an understanding that if the former exits the venture within five years, it should be paid a minimum 50 per cent of the acquisition price.