NTT DoCoMo said Tata Teleservices had failed to honour its commitment to buy the 26% stake held by the Japanese company.
Japanese company NTT DoCoMo has filed an arbitration proceeding with the London Court of International Arbitration, against Tata Teleservices.
NTT DoCoMo alleges that Tata Tele did not honour its commitment to buy the 26% stake held by the Japanese company in its joint venture with Tata Tele. The telecom venture operates under the brand Tata DoCoMo.
NTT DoCoMo had announced its intention of exiting the JV with Tata Tele in April last year. As per the terms of the JV, the Indian partner had the first right of refusal on the stake, which it exercised and agreed to buy the stake.
Due to various issues the deal has as yet not been concluded. Tata Tele reportedly was waiting for a response on an application made to the Reserve Bank of India to proceed in the matter.
The 26% stake was valued at Rs7,250 crore, and NTT DoCoMo had initially picked up the stake for $2.3 billion.
The Business Standard newspaper quoted a Tata Teleservices spokesperson as saying that the company was committed to fulfilling the obligations and find an amicable solution to the issue.
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