Due to a tax dispute, authorities in India have freezed Nokia’s assets. The Finnish manufacturer has sold its devices and services division to Microsoft, the sale has already received approval from Nokia shareholders, the EU Commission as well as the U.S. Department of Justice. With the deal set to be completed in the first quarter of 2014, unfrozen assets could result in complications during transfer of ownership of the assets located in India. On top of the amount it has already agreed to pay, Nokia has offered to pay an additional $369 million so that its assets, particularly a phone manufacturing facility in Chennai, is unfrozen.

Nokia has said that the tax dispute in India won’t affect the deal at a major scale, the only problems it will create though will be in transfer of ownership. Once the deal closes, the manufacturing facility along with other relevant assets will be handed over to Microsoft. If the assets are not unfrozen by the time the deal closes, they can not be transferred. However, the manufacturing facility will be allowed to operate as usual. To avoid shutting down production, Microsoft will have to bring Nokia on board as a contract manufacturer until the tax dispute is resolved and the assets, including the facility, is finally handed over to Microsoft. Redmond has agreed to pay $7.17 billion for Nokia’s devices and services division.

Filed in General. Read more about Microsoft and Nokia.

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