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Ericsson-RCom case: Anil Ambani, 2 others found guilty of contempt; SC says pay up or go to jail

Ericsson-RCom case: The apex court finds Anil Ambani and two directors -- Reliance Telecom Chairman Satish Seth and Reliance Infratel Chairperson Chhaya Virani -- guilty in a contempt of court plea filed by Ericsson India.


twitter-logo BusinessToday.In   New Delhi     Last Updated: February 20, 2019  | 11:55 IST
Ericsson-RCom case: Anil Ambani, 2 others found guilty of contempt; SC says pay up or go to jail
Anil Ambani

Ericsson-RCom case: The Supreme Court on Wednesday held Reliance Communication Chairman Anil Ambani and two more directors guilty of contempt of court in a petition filed by Ericsson India against him over non-payment of dues worth over Rs 550 crore. The other two directors who have been found guilty include Reliance Telecom Chairman Satish Seth and Reliance Infratel Chairperson Chhaya Virani. In its judgement, the Supreme Court said that Anil Ambani and the two directors had to pay Rs 453 crore to Ericsson India in four weeks, failing which they could be jailed for at least three months. The SC also imposed a fine of Rs 1 crore each on them. If they fail to deposit the fine, one-month jail will be awarded, said the Supreme Court.

A bench of Justices RF Nariman and Vineet Saran on February 13 had reserved its judgement after Ericsson India alleged the Reliance Group had money to invest in the Rafale jet deal but was showing reluctance in clearing its dues. The charge was vehemently denied by RCom.

Also read: Promoter stake falls below 50% in Anil Ambani's Reliance Capital, Reliance Communications

Senior advocate Dushyant Dave, who appeared for Ericsson India argued that there was wilful disobedience on the part of Anil Ambani and co. of Supreme Court's orders and that contempt action should be initiated against them. Mukul Rohatgi, who appeared for RCom counter-argued that no orders of the apex court were violated and hence there was no contempt.  

On October 23 last year, the court had asked RCom to clear the dues by December 15, adding that delayed payment would attract an interest of 12 per cent per annum. The plea by Ericsson had sought the court to direct Ambani and the lenders forum to hand over the Rs 550 crore with interest from sale proceeds as per the October 23 order.

Edited by Manoj Sharma

Also read: Anil Ambani knew about Rafale deal in advance; PM helped his friend, says Rahul Gandhi

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