Ericsson Moves Court Asking To Prevent Anil Ambani From Leaving The Country Over Dues Of Rs 550 Crore

The Logical Indian Crew India

October 3rd, 2018 / 12:17 PM

Anil Ambani Ericsson

Image Credit: The Times of India

Ericsson, the Swedish telecom equipment maker has filed a contempt of court petition in the Supreme Court against Reliance Communications chairman, Anil Ambani. Reliance communication has failed to pay Rs 550 crore to settle the dispute over dues. The Ambani-owned company, on September 28 asked for a 60-day extension to the previously decided deadline of September 30 to settle dues. Ericsson has petitioned in the apex court to not allow Anil Ambani and two senior executives from his group to leave the country after the alleged default in payments, reports The Times of India.


Delay in payment of dues 

Anil Kher, a senior counsel representing Ericsson told the Economic Times, “We filed a contempt of court petition against Anil Ambani, who had given an undertaking in the SC that the settlement amount to Ericsson will be paid by September-end.” In a statement given to stock exchange, Reliance Communication has called Ericsson’s petition to be unwarranted.

Ericsson has alleged that in 2014, they had signed a seven-year deal to operate and manage RCom’s nationwide telecom network, but were not paid dues to the tune of over Rs 1,000 crore.

Reportedly, a day before the SC hears the case on October 4, the National Company Law Appellate Tribunal (NCLAT) will hear the matter. NCLAT had earlier asked two firms to arrive at a settlement and September end was decided as the deadline then for RCom to pay Rs 550 crore.


What lies ahead for RCom?

Ericsson was supposed to get the payment as part of a business deal. Reportedly, the Anil Ambani group has already been battling a debt of about Rs 45,000 crore. In May, in dispute settlement at NCLAT, Ericsson had agreed to scale down its dues from Rs 1,600 crore to Rs 550 crore to be paid by September end. It was agreed upon the condition that if the company failed to pay up, it would be pushed back to insolvency proceedings at National Company Law Tribunal (NCLT) and sale of its assets would be reversed.

When Reliance Communication failed to do so, Ericsson decided to approach the top court. Ericsson said, “They have no respect for the nation, and have abused the process of law.”

Reportedly, until now RCom has sold its optic fibre and switching nodes to Jio for Rs 5,000 crore. However, the spectrum deal between RCom and Jio is stuck in a legal tussle, with the Anil Ambani-owned company appealing against the telecom department’s demand for over Rs 2,000 crore as spectrum usage charge before approving the transaction.


Also Read:  Anil Ambani-Led Reliance Energy Usurps Govt Tax Worth Rs 2,000 Cr, Response To RTI Reveals


Contributors

Written by : Shraddha Goled

Edited by : Sromona Bhattacharyya

Share your thoughts..

Related Stories

SC Anil Ambani Ericsson

Reliance Communications Granted Extension Till Dec 15 To Pay Rs 550 Crore To Ericsson

Reliance Sues NDTV

Anil Ambani’s Reliance Sues NDTV For 10,000 Cr Over Show On Rafale Deal

Trinamool Thrashes BJP Woman Worker

WB: Woman BJP Worker Moves Court After Assault By TMC Workers In Presence Of Police

Anil Ambani Tax RTI

Anil Ambani-Led Reliance Energy Usurps Govt Tax Worth Rs 2,000 Cr, Response To RTI Reveals

Nissan

Japanese Automaker Nissan Sues India Over Outstanding Dues; Demands Dues Of $770 Million

Nearly 3,550 VVPATs Found To Be Faulty Before Gujarat Elections

Latest on The Logical Indian

Awareness

In A Historic Move, Norway To Stop Its Biofuel Industry From Buying Palm Oils Linked to Deforestation

Get Inspired

Tamil Nadu Honour Killing Survivor And Dalit Rights Activist, Kausalya Remarries In Coimbatore

News

WB: BJP Booth Level Leader Murdered, Party Accuses TMC

News

UK Court Orders Vijay Mallya’s Extradition To India

Awareness

“Didi: The Untold Mamata Banerjee” – A New Biography Tracing The Political Journey Of The Firebrand Leader

News

Chaos In France: Over 1200 Arrests, Widespread Violence & Protests Force President To Break His Silence

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.