Tata Sons ordered to pay $1.17-bn compensation to NTT DoCoMo

By: | Updated: June 25, 2016 9:09 AM

The London Court of International Arbitration has ordered Tata Sons to pay $ 1.17-billion compensation to NTT DoCoMo for breaching an agreement on a India joint venture.

tata-reu-LThe Japanese firm had filed for arbitration on January 5, 2015 after Tata group failed to find a buyer for the stake. (Reuters)

The London Court of International Arbitration has ordered Tata Sons to pay $ 1.17-billion compensation to NTT DoCoMo for breaching an agreement on a India joint venture.

In November 2009, Docomo had acquired 26.5% stake in Tata Teleservices for about R12,740 crore . According to DoCoMo, the investment was with an understanding that it would get at least 50% of its acquisition price if it exits the joint venture in five years. Later, in April 2014, the company decided to exit after the joint venture struggled to grow subscribers quickly.

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The Japanese firm had filed for arbitration on January 5, 2015 after Tata group failed to find a buyer for the stake.

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