"The government has no role in it (Tata-DoCoMo dispute). It was a bilateral agreement between two parties. We can not change the rule to suit the convenience of somebody...," said a top Finance Ministry official.
"The agreement was the violation of the FEMA rule. Both of you decided to enter into an agreement, you can not expect government to change its rule to suit your requirements. If small guy comes, will anybody talk about them. It is for now them to sort it out," he said.
When DoCoMo decided to exit the joint venture, which struggled to grow subscribers quickly, it sought Rs 58 per share or Rs 7,200 crore from the Tatas. But the Indian Group offered Rs 23.34 a share in line with RBI guidelines which state that an international firm can only exit its investment at a valuation "not exceeding that arrived at on the basis of return on equity".
In June this year, a London tribunal LCIA ordered Tata Sons to pay DoCoMo a sum of USD 1.17 billion in compensation for breaching agreement on the India joint venture.
The Japanese firm has filed a plea in the Delhi High Court seeking enforcement of the arbitration ruling. Tata Sons has deposited the entire amount of USD 1.17 billion with the registrar of the Delhi High Court which is hearing the matter.
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