Tuesday, 25 June 2019

Billionaire Ambani risks jail over missed Ericsson payments

Image Credit: PTI

NEW DELHI: India’s top court said Indian industrialist and chairman of Reliance Communications (RCom) Anil Ambani wilfully did not pay 77.3 million U.S. dollars to Swedish telecom equipment maker Ericsson, thereby holding him guilty of contempt in a case, officials said.

“RCom had no intention to abide with the undertakings. Undertakings were false to the knowledge of the RCom and group companies. This amounts to contempt of court,” an official quoting the bench hearing the case said.

Apart from Ambani, the court held Reliance Telecom chairman Satish Seth and Reliance Infratel chairperson Chhaya Virani breaching the undertaking given to the court and the related orders.

The court however, said the contempt can be purged by clearing the payments with interest. If failing to do so, they will face three months jail term.

The Swedish company signed a deal with RCom in 2014 to manage and operate its network. Last year it approached India’s Supreme Court over unpaid dues of 77.3 million U.S. dollars.

Meanwhile, RCom said the company respects the court judgment and “shall comply with the same.”

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