Mukesh saves Anil from jail- New Delhi: Anil Ambani, Chairman of Reliance Communications Limited (RCom), a debt-ridden firm, thanked his elder brother Mukesh Ambani, chairman of Reliance Industries Limited and Nita Ambani, for helping him pay dues to Swedish company Ericsson. On Monday, it received Rs 458.77 crore from RCom.
A RCOM spokesman said that in accordance with the Supreme Court’s decision, the requisite payment of 550 crores and the interest received to Ericsson has been completed. RCom, whose lump sum settlement on Ericsson had the interest of more than Rs 550 crores, had already deposited Rs 118 crores with the Supreme Court in February. Swedish firm signed an agreement in 2014 to manage and operate RCom’s network and last year approached the court about unpaid outstanding amount.
Mukesh saves Anil from jail, helps him clear Rs 550 crore Ericsson dues
“My sincere thanks for showing my sincere elder brother, Mukesh, and Nita to stand with me during these efforts, and show the importance of enhancing this occasional support to be true to your strong family values. Anil Ambani said in a statement, “I and my family are grateful to them and they are connected to their gestures very deep.”
In February, the Supreme Court had found Anil Ambani guilty of contempt of court for deliberately failing to pay Ericsson’s payment. The court had ordered Anil Ambani and two RCom directors to pay arrears to Ericsson within four weeks or face a three-month jail sentence for contempt of court. The payment deadline expired on Tuesday.
Mukesh saves Anil from jail, This is the second time when Mukesh Ambani came to the rescue of his brother after his famous fights, who made a dog to the Reliance group and divided it between two brothers into two.
In 2018, Reliance Geo Infocomm, controlled by Mukesh Ambani, bought RCom’s wireless assets for Rs. 3,000 crore, in the indication that the past was buried in the affair. RCom has partially struggled for cash as a result of price war triggered by Reliance Jio Infocomm’s market entry, popularly known as Jio. Along with Monday’s payment, bin Laden ends his 18-month long fight with Telco Ericsson.
RCom shares on BSE fell 9.3 percent on Monday and closed at 4 rupees. Telco, who was once India’s second largest state, was forced to close its wireless business at the end of 2017 by a huge loss, to reduce the deficit and weighed under a debt of Rs 46,000 crore.
With the company’s income tax refund of 260 crores, Ericsson refused to give instructions to the lenders with the National Company Law Appellate Tribunal (NCLAT), to pay the outstanding amount, including interest, in which the main financial credit is to the State Bank of India is included, release the money.
After signing a seven-year deal in 2013 to operate and manage the nationwide network of Telecom, the Swedish company began a fight between the Swedish company and bankruptcy in 2017, when it was alleged that it paid approximately Rs 1,500 crore had not been.
The matter was transferred from the National Company Law Tribunal (NCLT) to the National Company Law Appellate Tribunal (NCLAT), where the deal between the two sides was Rs 550 crore between the deadline of 30 September. For the latest updates and trending news, you can visit www.indiatimelines.com.
Mukesh saves Anil from jail, With no end to RCom’s deadline, Ericsson turned to the Supreme Court, which gave RCom another deadline – December 15, 2018 – to repay the dues, both of which had missed RCom. When the principle settlement amount of Rs 550 crore was not paid, Ericsson filed three contempt petitions against RCom chairman Anil Ambani and two of his units were made party in the matter.
In February, the apex court had contempt for not paying the Ericsson’s dues despite having money to do so in Ambani. According to the orders of the Supreme Court, the last day of March 19 to pay was in which there was a penal interest.