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Indian court allows Nokia to sell frozen assets

Thursday - 12/12/2013, 9:12am  ET

MUMBAI, India (AP) -- A court in India has ruled that Nokia Corp. may transfer a factory seized by tax authorities to Microsoft as part of the Finnish communications giant's 5.4 billion euro ($7.2 billion) sale of its devices and services unit.

The future of the factory in the southeastern coastal city of Chennai had been in doubt. The company said it might have to be closed if it could not be included in the Microsoft deal.

The New Delhi High Court said Thursday it would permit the sale of Nokia's India assets. However, it required Nokia to put 22.5 billion rupees ($369,000) in escrow as collateral against the pending back-tax dispute. Nokia officials gave no immediate comment.

Indian authorities earlier this year raided the Chennai factory and accused Nokia of evading taxes.

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