The Reserve Bank of India (RBI) Thursday challenged the legality of the Tata-DoCoMo contract in the high court. The RBI in its application said Tata Sons should not be permitted to remit money overseas whether it is for a share buyback or arbitration award, reports CNBC-TV18.
On Thursday, RBI filed an application in the Delhi High Court which agreed to hear the plea and issued notices to Tata and DoCoMo. The next hearing in the case is slated for December 21.
Asserting that it isn’t supporting either of the two warring sides, RBI said the transaction as envisioned under the agreement is not FEMA compliant.
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