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Nokia withdraws plea to sell Chennai unit

Nokia India today withdrew from Delhi High Court its plea seeking permission to urgently sell its mobile manufacturing unit in Chennai, which was frozen over a Rs. 10,000-crore claim raised by the Income Tax department, saying the proposed buyer has backed out.

At the same time, Nokia and tax department told the court that a report has been received from Ernst and Young India Pvt Ltd (EY) on valuation of the company’s assets.

As per the report, Rs. 361 crore was the valuation of assets if they were to be sold as ‘on going concern’ (company not bankrupt) and Rs. 417 crore if ‘non going concern’ (company has gone bankrupt), they said.

Nokia submitted before a bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva that it was withdrawing the plea seeking permission to urgently sell the unit as the proposed buyer has withdrawn.

It told the court that the buyer had offered it Rs. 400 crore for the assets.

In response to Nokia’s submission, the court noted the proposed buyer had also offered a price that was in the same range as the valuation by EY.

The matter was listed after the court had on May 19 agreed to give it an urgent hearing after Nokia said a buyer had been found for its Chennai unit.

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