SC turns down Nokia's appeal over tax liabilities

The Supreme Court has rejected Nokia's appeal against a Delhi High Court order, directing the company to give a guarantee covering its tax liabilities in addition to the Rs 2,250 crore that it needs to deposit in an escrow account before allowing transfer of the handset maker's plant in Chennai to Microsoft.

"The decision means that the case now reverts to the February 5 Delhi High Court ruling on the asset transfer," Nokia said in a statement.

The high court order has directed Nokia to also pay a Rs 3,500-crore guarantee designed as an undertaking to cover tax liabilities of the Indian subsidiary beyond what is deposited in the escrow account.