Equity Tips, Tata Sons Agrees to pay $1.17 bn to NTT DoCoMo as Damages

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Tata Sons has agreed to pay USD 1.17 billion in damages to Japan's NTT DoCoMo  in their long-standing dispute over the latter's exit from a joint venture in India. The deal could be announced as early as Tuesday. The parties have opted for an out-of-court settlement. Following this, Tata Sons has withdrawn its application against DoCoMo in the Delhi High Court. The biggest hurdle to a settlement now remains the Reserve Bank of India, which remains opposed to the payout under the existing structure. RBI said the existing clause in the joint venture agreement was illegal, something which Tata Sons denies. 

RBI said a fixed rate of return for exit from the joint venture makes it unacceptable. HP Ranina, a senior lawyer, said this settlement is against the RBI's norms and the parties may not be able to take this forward. They will have to look for other alternatives.