Tata Sons to pay $1.17 billion to NTT DoCoMo as damages

NEW DELHI: Tata Sons, the promoter of the major operating Tata companies, has agreed to pay USD 1.17 billion to Japan's largest mobile phone firm NTT DOCOMO in compensation for breaching an agreement on joint venture, according to media report.

June 24, 2016, , The London Court of International Arbitration ruled in favour of DoCoMo over price it was entitled for exiting the Indian joint venture.

The Japanese firm had filed for arbitration on January 5, 2015.

In November 2009, Docomo had acquired 26.5 per cent stake in Tata Teleservices for about Rs 12,740 crore (at Rs 117 per share).

Later, in April 2014, the company decided to exit after the joint venture struggled to grow subscribers quickly.

DoCoMo said its 2008 investment was with an understanding that it would get at least 50 per cent of its acquisition price if it exits the Indian company in five years.