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Actionable news in DCM: NTT DOCOMO Inc,

India Said Planning to Block Tata Sons Payment to NTT Docomo

  • Finance ministry unwilling to give exemption needed by Tata
  • NTT Docomo seeks payment of $1.17 billion arbitration award

India plans to block Tata Sons Ltd.’s payment of a $1.17 billion arbitration award to NTT Docomo Inc., which is seeking compensation for its stake in the Indian conglomerate’s wireless business, people familiar with the matter said.

The finance ministry won’t grant an exemption to the Indian foreign exchange act that Tata Sons would need to pay the money to its Japanese partner, according to the people. The Indian government is wary of setting a precedent, as at least 10 other companies have sought waivers for similar deals, one of the people said, asking not to be identified as the information is private.

NTT Docomo is seeking compensation for its stake in Tata Teleservices Ltd. as it tries to exit one of its worst overseas investments. The London Court of International Arbitration ordered last month that Tata Sons, the holding company for India’s largest conglomerate, pay $1.17 billion to the Japanese wireless carrier for breaching an agreement over the wireless...