Ericsson Seeks Arrest Of RCom-Owner Anil Ambani Over Non-Payment Of Dues

Pratham Gharat

January 4, 2019

Trouble refuses to die down for Reliance Communications’ Chairman Anil Ambani. On failing to pay the dues of Rs 550 crore by RCom to Swedish telecom equipment maker Ericsson even after the deadline extension, Ericsson has now filed its second contempt petition in the Supreme Court. In the contempt petition, Ericsson has asked Ambani to be detained and be barred from travelling overseas unless he ensures payment reported The Economic Times.

Petition seeking Anil Ambani’s imprisonment

Ericsson, the Swedish telecom equipment maker has filed a contempt 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.

So, RCom was supposed the due on December 15. However, the company again failed to pay the dues, following which Ericsson filed a second contempt petition. “The fresh application was filed because RCom and others did not comply with the SC order. We have been waiting for payments for a long time and their default is contempt of court,” said senior counsel representing Ericsson Anil Kher told Economic Times. He further said that if found guilty under the contempt of court act, it would lead to civil imprisonment.

Earlier 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, reported The Times of India.

RCom initiates separate contempt proceedings

RCom has initiated separate contempt proceedings in Supreme Court against the Department of Telecommunications(DoT). RCom has blamed DoT for delaying the spectrum sale which would have enabled the company to pay back the dues.

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.