Nokia seeks lifting of asset freeze by Income Tax authorities

Looking to sell its plant near Chennai, Nokia on Tuesday sought lifting of an asset freeze imposed by the Income Tax department in the wake of a tax dispute, saying it is being approached by several prospective buyers.

The company in a statement said that several prospective buyers have been approaching it and the asset freeze is impeding the process.

The Chennai-unit, one of the largest manufacturing facilities for Nokia, suspended production from November 1 in the aftermath of it being excluded out of the Nokia-Microsoft $7.2 billion deal. Nokia sold its handset business to US technology giant in April.

Nokia's Chennai plant is locked in a legal dispute with the state government which slapped Rs 2,500 crore tax demand.

"The company's main focus at the moment is what we have consistently said since October. With production at Chennai suspended, we call on the government to lift the asset freeze imposed by the tax authorities so that we can explore potential opportunities for a sale to a suitable buyer," Nokia said in a response to a query from PTI.

"This is an urgent prerogative not only for Nokia, which is no longer in the business of making mobile phones, but also for the country to move towards its goal of supporting local manufacturing and reducing electronic imports," it said.

Confirming that Nokia was approached by parties interested in buying the Chennai facility, the company said, due to confidentiality reasons we will not comment further on this topic.

Nokia also said that eventual sale of the plant would offer a far brighter option for employment in the region and support the Centre's 'Make in India' initiative.

On reports of Nokia appointing 'Ernst and Young' to run the operations of the Chennai plant, the company said Nokia's longstanding policy is not to comment on media speculation.