TOI: Anil Ambani averts jail, RCom pays Rs 462 crore dues to Ericsson, shares end at all-time low

18 March 2019: Anil Ambani, the Chairman of Reliance Communications (RCom), has averted the three-month jail-term as the telecom company has reportedly cleared the dues with Swedish telecom equipment manufacturer Ericsson.

Anil Ambani-controlled Reliance Communications has paid the dues of Rs 462 crore to Ericsson today as March 19, 2019, was the last date for the payment, ET reported citing unnamed Ericsson lawyer.

The dues paid by Reliance Communications to Ericsson also include penalty interest.

Earlier last month, the Supreme Court held Anil Ambani guilty in contempt of court, observing a wilful default, for not clearing the dues to Ericsson and the apex court has said if RCom fails to pay the dues to Ericsson within four weeks then RCom Chairman Anil Ambani and Chairpersons of Reliance Infratel and Reliance Telecom will have to serve a jail term.

Reliance Communications shares on Monday, March 18, 2019, crashed as much as 10.22 per cent to a fresh all-time low of Rs 3.95 before settling at a lifetime closing low of Rs 4 on National Stock Exchange (NSE). RCom shares have fallen approximately 34 per cent since March 5, 2019.  

Meanwhile, the state-run telecom firm BSNL will approach National Company Law Tribunal (NCLT) this week to recover dues to the tune of Rs 700 crore from RCom, news agency PTI reported citing unidentified sources.

“BSNL has aready invoked bank guarantee of around Rs 100 crore submitted by RCom for default on payments. Decision was taken on January 4 by BSNL Chairman and Managing Director Anupam Shrivastava to start legal proceedings against RCom for recovery of dues of around Rs 700 crore,” PTI said in a report mentioning anonymous sources.

The Times of India reported

Categories: General News, India Bankruptcy

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