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Regular-article-logo Wednesday, 16 July 2025

Shadow of DoCoMo tiff on Tata UK assets

A dispute over alleged unpaid dues between Japan's mobile phone operator, NTT DoCoMo, and the Tata group could involve the latter's assets in Britain, according to a UK media report today.

TT Bureau Published 29.07.16, 12:00 AM

London, July 28 (PTI): A dispute over alleged unpaid dues between Japan's mobile phone operator, NTT DoCoMo, and the Tata group could involve the latter's assets in Britain, according to a UK media report today.

The Japanese firm has served an order from London's Commercial Court against Tata Sons which allows DoCoMo to enforce an arbitration deal, made in London in June, against Tata Sons' assets in the UK, The Financial Times reported.

Tata Sons issued a statement today stressing that DoCoMo has obtained an "ex parte" or one-sided order from the Commercial Court in London. "Because the order was obtained ex parte Tata's arguments have not yet been heard. We would like to clarify that the London court has granted Tata Sons 23 days, starting July 27, 2016, to apply to set aside the ex parte order.

"The arbitral award cannot be enforced until the end of that period, or until any application made by Tata Sons has been decided upon."

Tata Sons, the Indian conglomerate's holding company, owns a 29 per cent stake in Tata Steel, which includes embattled UK steel units, and a 23 per cent in Tata Motors, which includes the Jaguar Land Rover brands in the UK.

The Tata statement today said the UK assets of Tata Steel and JLR are not owned by Tata Sons. "These are subsidiaries of Indian public listed firms of which Tata Sons is a promoter with a minority shareholding of not more than 30-35 per cent. These are not party to the arbitration proceedings, and no award has been issued against them. The award cannot be enforced against them," it said.

DoCoMo declined to comment on the report.

The latest development follows DoCoMo's rejection of Tata Sons' offer to deposit $1.17 billion - a penalty awarded by an arbitration panel - with the Delhi High Court registrar.

The dispute relates to DoCoMo's exercise of its right to exit Tata Teleservices. DoCoMo had decided to exit Tata Teleservices in 2014 as the JV's performance was not up to the mark and had given Tata 90 days to find a buyer. With Tata failing to find a buyer for DoCoMo's stake, the latter sought a buyback option.

The Tata Group, however, could not repay the amount as the RBI felt it would violate the Fema norms. The Japanese firm then initiated arbitration proceedings, which ruled in favour of DoCoMo and fined the Tatas $1.17 billion.<>

Tata Sons had said in a statement earlier this week that it has "underlined" its commitment to honour its contractual obligations to DoCoMo, and has taken "every possible step keeping in mind the interests of all stakeholders and in accordance with Indian law".

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