The Permanent Court of Arbitration rejects India’s plea | Indian government might move to Singapore’s Supreme Court.
N Muruganandam, principal secretary to Tamil Nadu government’s industries department, said all obligations would be honoured and he hopes to finalise a deal within a month. While a company’s spokesperson said in a statement “Nissan continues to work with the government to resolve this matter“.
- India argued that the court does not have the jurisdiction to rule on a case brought against India by Japan’s Nissan Motor
- The Permanent Court of Arbitration in Singapore rejected Indian government’s plea.
- If India had won the argument the entire case would have been thrown out.
- Indian government likely to move to Singapore’s Supreme Court.
The core of the matter
In 2008, Nissan invested in setting up a car plant in Chennai. The state government promised numerous incentives and tax refunds. They were entitled to receive these incentives in 2015. After several unsuccessful follow-up meetings, Nissan gave India an ultimatum to appoint an arbitrator
In November 2017, Nissan sent a legal notice to Narendra Modi’s administration seeking dues for more than $770 million. They alleged the government of violating its Comprehensive Economic Partnership Agreement with Japan.