Latest News – The Delhi High Court’s Friday judgment clearing the Tata-Docomo transaction will have a far-reaching impact on similar cases where foreign investors are ooking to exit Indian joint ventures — the cases where an overseas arbitration court has given an award in favour of a foreign investor.
Corporate lawyers said many private equity firms and insurance majors were looking to exit their investments in India and had signed similar agreements with agreed valuations but due to the Foreign Exchange Management Act, which bars predetermined valuations, they were stuck with their investments in India. Today’s judgment will have far-reaching consequences on other pending matters as the Delhi High Court has made it clear that the award by the London Court of International Arbitration Tribunal will have to be honoured by the Tatas said Tejas Karia, partner, Shardul Amarchand Mangaldas.
The Reserve Bank of India had objected to the remittance from Tata Sons to Docomo for the buyback of the latter’s 26.5 per cent stake in Tata Teleservices citing FEMA. According to a (Read More)