Mukesh Ambani rescues Anil, pays Ericsson Rs 462 crore dues

Irving Hamilton
March 18, 2019

But RCom said here the airwaves deal had been called off by "mutual consent" due to objections from India's telecom department and more than 40 of the company's foreign and domestic lenders.

"My honest and heartfelt thanks to my respected elder brother, Mukesh, and Nita, for standing by me during these trying times, and demonstrating the importance of staying true to their strong family values by extending this timely support".

Swedish telecom equipment maker Ericsson has received ₹4.62 billion from Anil Ambani-led Reliance Communications Ltd (RCom), a spokeswoman for Ericsson said on Monday.

The SC bench, comprising Justices R F Nariman and Vineet Saran, said the three Reliance companies failed to adhere to the 120 days deadline and 60 days extra given by the apex court to pay the required amount to Ericsson.

Almost 15 months after Anil Ambani agreed to sell assets of Reliance Communications to a telecom firm run by elder brother Mukesh, the two groups on Monday called off the deal citing delays in approval from the government and lenders. It extracted a personal guarantee from Ambani to pay the dues.

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Had he not paid Ericsson Ambani would have been held in contempt of court because it had been judged that he had the cash handy, but just felt like holding onto it.

On May 29, RCom offers an upfront payment of Rs 550 crore to Ericsson, as a settlement, on condition that Ericsson withdraws the insolvency application.

The Swedish firm signed a deal in 2014 to manage and operate RCom's network and a year ago approached the court over the unpaid dues.

RCom had earlier deposited Rs 118 crore with the Supreme Court Registry from its operational funds, which was later handed over to Ericsson.

This was after the Supreme Court last month found billionaire businessman guilty of contempt on a plea filed by Ericsson India. The last date of making the payment was March 19.

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