Tata Sons will seek necessary permissions to implement the June 22, 2016, London Court of International Arbitration (LCIA) award in the Tata-NTT Docomo case.
The development comes after Delhi High Court on last Friday approved the consent terms between Tata Sons and Japanese mobile phone operator NTT Docomo which were laid down by the LCIA award.
According to a regulatory filing made to the BSE by Tata Power on Tuesday, Tata Sons shall take necessary permissions from the Competition Commission of India (CCI) and tax authorities to remit the amount in lieu of shares to be transferred to Tata Sons as per the consent terms.
"In terms of the Inter-Se Agreement dated 25 March 2009, Tata Power is to acquire 118,222,767 equity shares of Tata Teleservices Limited (TTSL). As on the date of the Arbitration Award i.e. 22 June 2016, $117,128,573 was payable by Tata Power for the same," Tata Power said in the filing.
"The final amount payable would be determined on the date of the payment to Docomo and would, therefore, vary over the amount indicated above. Tata Power has remitted Rs 790 crore to Tata Sons on 9th August 2016 and this will be appropriately adjusted against the amount that will be governed by the terms and conditions similar to those stipulated by the Delhi High Court Order of 28 April 2017."
On Friday, the Delhi High Court dismissed the Reserve Bank of India's (RBI) application opposing the enforcement of a $1.18 billion arbitral award in the Tata-NTT Docomo case.
Tata Sons had announced in February 2017 that it had reached an agreement with NTT Docomo. Tata Sons had all along maintained that while it was willing to pay NTT Docomo what it owed the company according to their agreement, Indian laws prevented it from doing so.
In April 2014, NTT Docomo had decided to sell its entire 26.5 per cent stake in Tata Teleservices and withdraw from mobile telephony in India. Under the agreement between Tata and NTT, the latter had the right to request a buyer for its stake at a fair market price or 50 per cent of its acquired price, amounting to Rs 7,250 crore, whichever was higher. That would have meant a higher price than what is allowed under current rules which state that foreign companies can only exit investments at a valuation based on the return on equity.
In January 2015, NTT initiated arbitration proceedings against Tata Sons, claiming the latter failed to fulfil its obligation to find a buyer for Docomo's stake in Tata Teleservices Ltd.
A London tribunal had ordered the promoter of major Tata operating companies to pay $1.17 billion as compensation to NTT Docomo in June for breaching an agreement. Thereafter, Docomo filed enforcement proceedings in Delhi High Court. It also approached London's Commercial Court seeking enforcement action assets such as Jaguar LandRover and Tata Steel, which it argued, are controlled by Tata Sons.
--IANS
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