Mumbai, March 18: Industrialist Anil Ambani on Monday paid the first instalment of Rs 460-crore dues to Swedish equipment maker Ericsson, thus preventing himself from going to jail. The report of Reliance Communications chief paying off the first instalment comes a day before the ending of Supreme Court deadline, confirms the Ericsson spokesperson.
According to the settlement agreement between the two global companies, Ambani was ordered by the Supreme Court to pay Rs 550 crore (with interest) and all the outstanding dues, which his firm repeatedly failed to pay. With continuous delays, Ericsson had moved the Supreme Court, asking to send Anil Ambani to jail for contempt of court, reports the Financial Express. Anil Ambani Held Guilty of Contempt by Supreme Court in Case Filed by Ericsson, Ordered to 'Pay Rs 453 Crore or Face Jail Term'.
After listening to the appeal of Ericsson, the apex court on February 20, 2019, had ordered Reliance Communications to pay the remaining amount in one month. It had also said that, if failed, Anil Ambani will have to face three-month imprisonment. Fearing imprisonment, RCom had deposited Rs 118 crore with the Supreme Court per an earlier order.
Earlier, the debt-ridden RCom on February had sought an urgent approval form its lenders to allow the release of Rs 260 crore directly to telecom equipment maker Ericsson. Since RCom had already deposited the amount of Rs 118 crore, the clearance of Rs 460 crore by Ambani saved him from going to jail.