Nokia India on Tuesday informed the Delhi High Court that it wants to withdraw its plea to sell its mobile manufacturing unit at Sriperumbudur, near Chennai, which was frozen over a Rs 10,000-crore tax dispute with the Income Tax department. The reason it cited was that the proposed buyer has backed out.
Nokia spokesperson was quoted in a statement saying: “In light of recent developments around our efforts to find a buyer for our mobile phone manufacturing facility in Sriperumbudur, Nokia today withdrew its request to the Delhi High Court to have the asset freeze lifted.”
Last week, the Essar Group said they were no longer pursuing the deal. Ever since the liens were placed on the Nokia Factory at Sriperumbudur, by the Indian tax authorities in September, 2013, Nokia has worked tirelessly to find a solution whereby the freeze could be lifted and the site could be sold. “Clearly the freeze has hindered our efforts to find a buyer, but Nokia has worked in good faith throughout and followed all procedures mandated by the courts, including the independent valuation of factory assets,” the Nokia spokesperson said. But State government officials in Tamil Nadu are confident that the plant would soon find a buyer and start operations. “We have been repeatedly saying that we are working on it. The plant will surely find a taker soon,” said an official, wishing anonymity. Even Nokia in its email statement mentioned that it no longer made mobile phones. Therefore, sooner a buyer is found, the better the prospects for the technology eco-system in Sriperumbudur.
