Millennium Post

Essar pulls out of race to buy Nokia’s Chennai handset plant

Indian conglomerate Essar Group on Thursday said it is no longer interested in buying Nokia’s Chennai mobile manufacturing unit. “In recent times there has been a spate of media reports on Essar acquiring Nokia’s Chennai plant. Essar confirms that it is no longer pursuing the deal and therefore categorically denies the media speculation around this subject,” Essar said in <g data-gr-id="17">statement</g>.

A senior Tamil Nadu government official last month said Nokia has informed that it has identified a serious buyer and added that Essar chief Shashi Ruia was in Chennai to look at the plant. Nokia’s Chennai plant is under freeze over an estimated Rs 10,000 crore tax dispute with the Income Tax department. 

Nokia has sought court’s permission to sell the plant and keep the amount in escrow account till the matter is resolved but the I-T department has said that the amount that the company is offering is very little. The Delhi High Court has ordered to appoint consulting firm Ernst & Young India as <g data-gr-id="15">valuer</g> of the plant. 
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