Facing uncertainty over their future in the wake of Nokia Corp.’s Rs.6,500-crore tax dispute, employees at the company’s facility in Sriperumbudur near Chennai have decided to move the Delhi high court, which is hearing the case, Mint reported.
The tax dispute has played spoilsport for the Chennai plant in Microsoft Corp.’s $7.2 billion deal to acquire Nokia’s equipment business. Recently, Finland’s foreign minister Erkki Tuomioja had said that in the worst case the Chennai plant could face closure. He had also said that unless this tax dispute is solved and the assets of its Chennai plant unfreezed before 12 December, the plant would be left outside of Nokia-Microsoft agreement, the report added.
According to the report, Nokia had earlier said if the sale of the Chennai plant does not happen, the company would wind up its operations over a period of 12 months. The Chennai-plant employs about 8,000 people with 20% of them women and about 30,000 sub-contractors.
Read the complete Mint report here