A case being heard in London and New Delhi is testing Prime Minister Narendra Modi’s campaign to boost foreign investment in India. The dispute pits Japan’s biggest mobile phone company, NTT Docomo Inc., against Tata Sons Ltd., the holding company of India’s largest industrial conglomerate. The result may signal whether Modi’s initiative will affect shareholder rights in India. Foreign direct investment into India climbed 23 percent to $55 billion in the 12 months through March 2016, buoyed partly by Modi’s steps to ease curbs on inflows.
How much money Docomo should receive for walking away from the 26.5 percent stake in Tata Teleservices, one of its worst overseas investments. Docomo spent 266.7 billion yen ($2.6 billion) for the stake in 2009, seeking to expand into one of the world’s fastest-growing major wireless markets.
