There are talks in the market that the Indian Government might allow the telecom company Nokia to sell off its Chennai based plant. However the Government has put forth a condition. The money thus obtained will be deposited in escrow account. It will be there till the final verdict of a tax dispute case is out for the Finnish firm for a tax dispute of Rs. 21, 000 crore.
According to a news source, “The Prime Minister (Narendra Modi) took initiative to resolve Nokia factory issue so that mobile manufacturing can be restarted in its Chennai plant.”
According to the sources, there was a formation of inter-ministerial panel to finalize on whether Nokia should be allowed to sell the Chennai plant. The Central Board of Direct Taxes (CBDT) has replied in affirmation to the proposal to allow Nokia sale its plant. The panel thus created comprised of department of revenue, Department of Electronics and IT, and the Department of Industrial and Policy Promotion.
Incidentally, on March 3 in the parliament, Prime Minister Narendra Modi indicated that the Chennai based wing of the telecom giant, will start functioning again after remaining shut for a few months.
Recently, the assets of the Chennai plant of the Finnish telecom giant have been seized by the Department of Income Tax. The next hearing for the income tax dispute by the firm is on April 6. It is on this day that the resolution for the sell-off will be presented before the Supreme Court, according to the sources.
According to a source, “There are three buyers who have shown interest in the plant but the deal can be finalized only after the court allows its sale.” The Income tax department claimed that Nokia owes 21, 153 crore in terms of tax. The amount is including penalty. The tax calculated is for a seven year period between 2006-2013.