An offer made by Tata Sons', the holding company of all Tata group firms, to buy NTT DoCoMo's stake in joint undertaking Tata Teleservices Ltd (TTSL) for about Rs. 7,250 crore has been rejected by RBI.

NTT DoCoMo, Japan's biggest telecom operator by subscribers had said it will sell its entire 26.5 per cent stake in TTSL in April last year, thus departing from Indian market five years after it arrived in the market.

After the Indian company failed to realize performance targets mentioned in the agreement between the two companies, the telecom operator intended to exit.

According to a Tata Sons spokesperson "The RBI has conveyed that it cannot accede to this request as the same is not in conformity with the extant Foreign Exchange Management Act regulations and has advised that any such purchase of shares be at current fair value of shares. This issue will now have to be resolved in the arbitration between the parties."

Last year in November, Tata Sons had applied to the RBI to acquire NTT DoCoMo's stake at Rs. 58.045 per share.

The Japanese company had purchased the stake for $2.7 billion.in March 2009.