There are certain sectors in India which work well. The tax department being one of them. And surprisingly there are honest politicians, policemen, judges and so on. Broadly categorizing India and Indians as corrupt is a weak generalization.
What if I say every adult Finn is a closet xenophobe? Will you agree to this generalization?
Nokia may or may not be liable to this tax. The rule of the land you have to follow. There is a judicial process if you want to take that path to contest. Indians and Indian government need not be blamed if the sale of Nokia is held up due to this issue. It does not matter to us. Blame the consulting idiots who are advising Microsoft and Nokia in this sale for overlooking these issues.
And any comment regarding "India will lose, we will take our business elsewhere" is an empty threat. India is one billion strong - we have one of the biggest middle classes and the largest group of young population in this planet. Take your business elsewhere and you will lose. Ask yourself - where will you take your business - China? Russia? Yes, they are great places as far as I know.
Now, get off my lawn.