Two options for Anil Ambani; Pay up or go to jail, says Supreme Court
Wednesday,20 Feb 2019
Media eye News service
The Supreme Court has put two options before industrialist Anil Ambani, either to pay Rs. 453 crores to Ericsson India or go to jail for three months, as he was held guilty of contempt today by the top court. Anil Ambani should pay the entire amount to the Swedish company within four weeks.
Reliance Telecom Chairman Satish Seth and Chhaya Virani, Reliance Infratel Chairperson, were also held guilty of contempt by the top court and fined Rs. 1 crore each which they should pay within one month.
Ericsson India had filed a suit earlier after the Reliance Telecom failed to give them Rs 550 within the stipulated time as per the court ruling. They alleged that Anil Ambani is doing injustice to them though he has money to invest in the Rafale deal. Anil Ambani had told the top court that with the failure of an assets sale deal with older brother Mukesh Ambani's Reliance Jio, his company had entered insolvency proceedings.
Ericsson demands that the contempt of court should be filed against Anil and his directors and they must be behind the bars till they clear their dues while calling for actions to block them going outside India. Ericsson had earlier, deducted dues to Rs.550 crore from the initial 1600 crore due to the settlement done in the presence of the court.
"Anil Ambani and others breached their undertaking," the court said, calling it "willful disobedience" of its order that they should 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."