Supreme Court rejects Nokia appeal on asset transfer to Microsoft
15 March 2014 6:10 AM IST
The ruling upheld a lower court verdict over the plant in Chennai, which is the subject of a tax dispute, and had been challenged by the Finnish company.
Nokia’s case is one of several high-profile tax disputes involving foreign companies in India. Vodafone Group Plc, IBM and Royal Dutch Shell Plc are among foreign firms contesting local tax claims. Nokia, which is selling its mobile phones business to Microsoft in a 5.4 billion euro deal, last month appealed to the Supreme Court saying the Delhi High Court had imposed new conditions over the transfer after previously lifting a freeze.
The deal, which will allow Nokia to shift its focus to network equipment, is expected to close by the end of this month and Nokia had been keen for a ruling before then. Nokia did not immediately comment after the Supreme Court verdict on Friday.
Nokia had agreed at the Delhi High Court to set aside 22.5 billion rupees in an escrow account while it fights the tax authority’s claims in court. But it was also asked to give a guarantee for 35 billion rupees more, which the company has said will restrict its ability to contest the tax claims locally and internationally.
The Chennai plant is one of Nokia’s biggest phone-making factories and the company says it employs 8,000 people. If the plant is not allowed to be transferred, Nokia can run it as a contractor to Microsoft but not for long, the Finnish company’s lawyers have previously said in court hearings.
Nokia was served with a tax demand of about Rs 20.8 billion in March last year. Including the anticipated liability, interest and penalty, the bill could total 210 billion rupees, a lawyer representing the tax office said.
Mangalore University alumnus Rajeev Suri may be Nokia CEO
New Delhi: After Satya Nadella, it may now be the turn of another Mangalore University graduate to head a Fortune 500 company. Rajeev Suri, who currently heads Nokia’s telecom equipment business, is tipped to become the global chief executive officer of Nokia Corporation.
An announcement elevating Suri may be made by March-end or April, when software giant Microsoft concludes the acquisition of Nokia’s handset business, Finnish media reports suggest. After the acquisition, Nokia will be left with the telecom equipment, location-based services and advanced technologies business. Suri is an engineering graduate from Mangalore University.
If chosen, Suri will join an elite club of Indians heading global firms, which includes Microsoft CEO Satya Nadella PepsiCo Chairman Indra Nooyi, Reckitt Benckiser Chief Executive Rakesh Kapoor, MasterCard President and Chief Executive Ajay Banga and Deutsche Bank’s Anshu Jain.
Suri, who has headed Nokia Solutions and Networks (NSN) since October 2009, has been credited for ‘presiding over consistently improving results leading to the successful turnaround and restructuring of the company’. According to his official profile, Suri has a Bachelor of Engineering degree in Electronics and Telecommunications from Mangalore University. He is based in Espoo, Finland.
With more than 23 years of international experience, Suri has worked in strategy and mergers & acquisitions, product marketing, sales, major account leadership, regional and business unit leadership and has lived in the Middle East, Asia, Africa and Europe. Suri joined Nokia in 1995.
Nokia’s case is one of several high-profile tax disputes involving foreign companies in India. Vodafone Group Plc, IBM and Royal Dutch Shell Plc are among foreign firms contesting local tax claims. Nokia, which is selling its mobile phones business to Microsoft in a 5.4 billion euro deal, last month appealed to the Supreme Court saying the Delhi High Court had imposed new conditions over the transfer after previously lifting a freeze.
The deal, which will allow Nokia to shift its focus to network equipment, is expected to close by the end of this month and Nokia had been keen for a ruling before then. Nokia did not immediately comment after the Supreme Court verdict on Friday.
Nokia had agreed at the Delhi High Court to set aside 22.5 billion rupees in an escrow account while it fights the tax authority’s claims in court. But it was also asked to give a guarantee for 35 billion rupees more, which the company has said will restrict its ability to contest the tax claims locally and internationally.
The Chennai plant is one of Nokia’s biggest phone-making factories and the company says it employs 8,000 people. If the plant is not allowed to be transferred, Nokia can run it as a contractor to Microsoft but not for long, the Finnish company’s lawyers have previously said in court hearings.
Nokia was served with a tax demand of about Rs 20.8 billion in March last year. Including the anticipated liability, interest and penalty, the bill could total 210 billion rupees, a lawyer representing the tax office said.
Mangalore University alumnus Rajeev Suri may be Nokia CEO
New Delhi: After Satya Nadella, it may now be the turn of another Mangalore University graduate to head a Fortune 500 company. Rajeev Suri, who currently heads Nokia’s telecom equipment business, is tipped to become the global chief executive officer of Nokia Corporation.
An announcement elevating Suri may be made by March-end or April, when software giant Microsoft concludes the acquisition of Nokia’s handset business, Finnish media reports suggest. After the acquisition, Nokia will be left with the telecom equipment, location-based services and advanced technologies business. Suri is an engineering graduate from Mangalore University.
If chosen, Suri will join an elite club of Indians heading global firms, which includes Microsoft CEO Satya Nadella PepsiCo Chairman Indra Nooyi, Reckitt Benckiser Chief Executive Rakesh Kapoor, MasterCard President and Chief Executive Ajay Banga and Deutsche Bank’s Anshu Jain.
Suri, who has headed Nokia Solutions and Networks (NSN) since October 2009, has been credited for ‘presiding over consistently improving results leading to the successful turnaround and restructuring of the company’. According to his official profile, Suri has a Bachelor of Engineering degree in Electronics and Telecommunications from Mangalore University. He is based in Espoo, Finland.
With more than 23 years of international experience, Suri has worked in strategy and mergers & acquisitions, product marketing, sales, major account leadership, regional and business unit leadership and has lived in the Middle East, Asia, Africa and Europe. Suri joined Nokia in 1995.
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