Top

Ericsson case: SC directs Anil Ambani to clear Rs 453 cr dues or serve jail

It is to be mentioned that, Anil Ambani's Reliance Defence is one of the offset partners of French aircraft manufacturer Dassault, with whom Government of India had signed the controversial deal for 36-Rafale jet, in 2016.

Saima Siddiqui

Saima SiddiquiBy Saima Siddiqui

Published on 20 Feb 2019 8:26 AM GMT

Ericsson case: SC directs Anil Ambani to clear Rs 453 cr dues or serve jail
X
Ericsson case: SC directs Anil Ambani to clear Rs 453 cr dues or serve jail
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print

New Delhi: The Supreme Court, on Wednesday, held Reliance Group chairman, Anil Ambani guilty of contempt for not paying Rs 550 crore to Swedish telecom equipment maker Ericsson and fined him and two of his directors Rs. 1 crore each. The apex court also mentioned to award the Industrialist three months in jail if he fails to clear his outstanding due of Rs. 453 crores to Ericsson India within four weeks.

The court termed Anil's behaviour "cavalier attitude" and said "The Reliance Communications chairman and others breached their undertaking," and any unconditional apology given by Reliance needs to be rejecteda. Top court also directed Anil to repay Swedish Telecom Equipment maker Ericsson. In a statement, a Reliance Communication Limited spokesperson said: "We respect the Supreme Court judgement. The RCOM Group shall comply with the same."

The Supreme Court ruled that Rs. 180 crore have already been deposited by Reliance Group in the court registry be given to Ericsson, while, rest of the amount that sums to Rs. 453 crores has to be repaid by RCOM to Ericsson India within four weeks.

The discourse between the two companies crept in in 2018, when Ericsson India moved to Supreme Court against Anil Ambani's company over unpaid dues of Rs. 550 crore. The two companies had signed a seven-year deal in 2014, where Ericsson were to manage and operate RCOM's network.

Ericsson argued before the court while the Reliance Group had the money to invest in the Rafale jet deal, it didn't clear its dues with Ericsson. The allegations, however, were vehemently denied by the Anil Ambani-led company.

It is to be mentioned that, Anil Ambani's Reliance Defence is one of the offset partners of French aircraft manufacturer Dassault, with whom Government of India had signed the controversial deal for 36-Rafale jet, in 2016.

RCom, however, in its defence said that it had tried to move "heaven and earth" to ensure Ericsson gets its dues but was unable to do so because of the failed assets sale. It also agreed to deposit Rs. 118 crore with the top court's registry, however, Ericsson refused to accept the offer.

The contempt petition was filed against Anil Ambani, Reliance Telecom chairman Satish Seth and Reliance Infratel chairperson Chhaya Virani.

On October 23, the apex court had directed RCom to clear its dues by December 15, failing to which would mean an interest of 12 per cent a year.

The fresh plea by Ericsson had sought that the court direct Anil Ambani and the lenders forum to follow that order and hand over Rs. 550 crore with interest.

Saima Siddiqui

Saima Siddiqui

Next Story