Tata-Docomo Settlement Seen Helping Investor Confidence in India
- Delhi High Court rules in favor of $1.2 billion Docomo award
- Ruling rejects central bank view on foreign-investor exit rule
The logo of Tata DoCoMo, a joint venture between NTT DoCoMo Inc. and Tata Teleservices Ltd., is displayed outside a company's store in Mumbai, India, on Saturday, Nov. 5, 2016. Cyrus Mistry, the ousted chairman of India's biggest conglomerate, was replaced as Tata Sons chairman by his 78-year-old predecessor Ratan Tata at a board meeting on Oct. 24. Tata Sons said the conglomerate's board and Trustees of the Tata Trusts were concerned about a growing “trust deficit” with Mistry, which prompted the company to remove him.
Photographer: Dhiraj Singh/BloombergAn Indian court approved a settlement that allows Tata Sons Ltd. to pay a $1.17 billion arbitration award to estranged partner NTT Docomo Inc., soothing foreign investors’ concern that the central bank’s interpretation of investment rules would effectively prevent them from exiting losing bets.
Under the settlement, Docomo will receive funds deposited by Tata Sons with the court pending the ruling, Justice S. Muralidhar of the Delhi High Court said Friday. The court rejected the Reserve Bank of India’s objection to the settlement.