Trapped in a trouble..! SC finds Reliance's Anil Ambani guilty of contempt in Ericsson default case

NewsBharati    20-Feb-2019
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New Delhi, February 20: Reliance Communications Chairman finds himself trapped in a monetary obstacle abide the Supreme Court’s decision to hold him guilty of court’s contempt in a petition filed by Ericsson India against him over non-payment of dues worth over Rs 550 crore.
 
 
The Supreme Court on Wednesday held two more directors 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 denied by Reliance Communications.
Senior advocate Dushyant Dave, who appeared for Ericsson India argued that there was wilful disobedience on the part of Anil Ambani and the company aligned of Supreme Court's orders and that contempt action should be initiated against them.
On October 23 last year, the court had asked Reliance 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.