Nokia Wants Permission to Sell Chennai Plant

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Nokia Wants Early Permission

Finnish mobile manufacturer Nokia needs early permission to unload its plant in Chennai and put the money from the deal in an escrow account until the time its tax dispute with Indian executive is resolved.

“We’ve stated that if we are allowed to promote the manufacturing facility, any money we get from the sale, we’d put it within the escrow account. It will not be ours. We’d put it in a place unless the tax dispute is resolved,” Barry French, executive vp, advertising, Communications and company Affairs, Nokia, told PTI in an interview in Helsinki.

Within the first feedback through a high government after Nokia’s decision remaining week to suspend operations at its cellular factory close to Chennai, French expressed situation over the standing of the plant and its declining price.

“What is especially crazy is that the value of the facility is going down literally every day,” he said. “it might be in the hobby of everybody that we get what value we are able to get from the amount,” he delivered.

Nokia Wants Early Permission to Sell Chennai Plant

 

Nokia has announced suspension of operations at Chennai plant, as soon as the most important facility of the company anyplace on this planet, from November 1 which has thrown into uncertainty the future of about 1,100 staff at present working there.

“We will feel free to place the cash into escrow and take a look at to find a purchaser to get the jobs again. It’s heartbreaking,” French mentioned.

The Helsinki-primarily based firm used to be forced to keep the manufacturing unit out of a $7.5 billion (roughly Rs. 46,100 crores) deal on the market of its handset business to Microsoft, as a result of tax dispute with Indian authorities.

Tax authorities allege that Nokia evaded paying taxes via wrongfully claiming an exemption on tool exports. Nokia has challenged the claims of tax department in courts.