Hinduja flagship commercial vehicle major Ashok Leyland Ltd (ALL) has said that it does not owe any royalty to Nissan, its estranged joint venture (JV) partner for LCV business.
Reacting to reports that Nissan issued a termination notice to ALL due to latter's alleged failure to pay royalty, an Ashok Leyland statement said: “ We wish to clarify that Ashok Leyland does not owe any royalty to Nissan. One of the JV companies, Nissan Ashok Leyland Technologies Limited (JV Company) owes a minor sum of Rs 2.34 crore to Nissan Motor Company (Nissan) as royalty,” the statement said.
ALL being a shareholder in the joint venture companies with Nissan, had issued a notice to Nissan to protect the interests of the JV, as well as its own interest as a shareholder. The notice has been served on Renault Nissan Automotive India Private Limited (RNAIPL) by ALL for continued wrongful misuse of the assets owned by one of the JV companies, the statement said.