Anil Ambani Thanks Brother Mukesh Ambani For Helping RCom Pay Rs 460 Crore to Ericsson
Anil Ambani, who was facing a jail term if he would had failed to repay the outstanding amount, received aid from his brother, with whom the relations had turned sour since 2005.
Mumbai, March 18: Industrialist Anil Ambani, who heads the financially strained Reliance Group, thanked his elder brother and Reliance Industries Ltd chief Mukesh Ambani for repaying Rs 460 crore to Ericsson, a Swedish telecom firm which had moved the Supreme Court after the Reliance Communications (RCom) failed to clear its due.
Anil Ambani, who was facing a jail term if he would had failed to repay the outstanding amount, received aid from his brother, with whom the relations had turned sour since 2005 -- when the siblings parted ways after dividing the assets left behind by their late father, Dhirubhai Ambani.Ā Anil Ambani Saves Himself From Going to Jail, Pays Rs 460 crore to Ericsson.
In a statement issued by RCom, Anil Ambani was quotedĀ expressingĀ "heartfelt" gratitude to Mukesh and his wife Nita Ambani.
"My sincere and heartfelt thanks to my respected elder brother, Mukesh, and Nita, for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support. I and my family are grateful we have moved beyond the past, and are deeply touched with this gesture," the statement said.
About the Ericsson-RCom Dispute
TheĀ Supreme CourtĀ on February 20 had heldĀ RComĀ chairmanĀ and two directors guilty of contempt of court while hearing a contempt plea filed byĀ EricssonĀ India against him over not clearing dues of Rs 550 crore.
A bench comprising JusticeĀ Rohinton Fali NarimanĀ and JusticeĀ Vineet SharanĀ had askedĀ Anil AmbaniĀ and the two directors to not treat the apex court's orders with a "cavalier attitude."
Reacting to the top court's directive,Ā Reliance CommunicationĀ spokesperson in a press statement, said: "We respect the Supreme Court's judgment. TheĀ RComĀ group shall comply with same."
The judicature ordered Ambani, Seth, and Virani to pay Rs 453 crore toĀ EricssonĀ in a span of four weeks failing which they would face a three-month jail term.
The apex court also imposed a fine of Rs 1 crore each on Ambani, Seth, and Virani. The court had directed them to deposit the amount with the apex court registry within a span of one month. If they fail to furnish the amount, the three will be awarded a month's jail-term.
It directed that Rs 118 crore already deposited byĀ Reliance GroupĀ in the apex court's registry be disbursed to Ericsson.
The bench said the undertakings given the three Reliance-based companies to pay, showed that they had "no intention" to honour it within the 120 days given by the court or the extended time allotted.
The bench held that the undertaking given by them was false to the knowledge of the court and it affected the administration of justice.
Anil AmbaniĀ was present in the court when the bench pronounced the order.
Earlier, the top court had asked Ambani to be present before it during the hearing in connection with the contempt case.
Ericsson had contended thatĀ RComĀ is minting huge profits and is wrongfully claiming that it has no money to pay Rs 550 crore to theĀ telecom equipment maker.
Anil Ambani-ledĀ RCom had earlier agreed to deposit Rs 118 crore but Ericsson refused to accept. Following which, the top court had asked the RCom chief to deposit the amount in its registry.
On October 23 last year, the top court had asked RCom to clear the dues by December 15, 2018, saying delayed payment would attract the interest of 12 per cent per annum.
In 2014,Ā Ericsson IndiaĀ had signed a seven-year deal to operate and manage RCom's nationwideĀ telecom network.Ā It had alleged that RCom didn't pay dues of over 1,500 crore. It challenged the debt-ridden firm before theĀ NationalĀ Company Law Appellate Tribunal (NCLAT).
Ericsson later agreed to settle its debt of over Rs 1,500 crore for a sum of Rs 550 crore. Following, the NCLAT order the apex court previously had noted that RCom within 120 days will have to settle its dues of Rs 550 crore.
(With ANI inputs)
(The above story first appeared on LatestLY on Mar 18, 2019 10:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
