The Madras High Court has instructed the tax authorities to not draw money from the attached accounts of Nokia India Limited after the authority seized the company’s bank accounts.

The issue relates to purchase of phones by the sales entity of the company from Nokia India, which manufactured mobile devices at its factory in a Sriperambudur SEZ, near Chennai. The Rs 1.9 billion tax was slapped for the alleged violation in the purchase of phones, following which  the tax authority had seized Nokia India’s two bank accounts at the State bank of India and Bank of America and given a 15-day time period to settle the tax demand. The company had, however, filed a petition challenging the move.