SC holds Anil Ambani and Two Directors Guilty of Contempt, Orders To Pay Rs453 Crore to Ericsson within 4 Weeks
Moneylife Digital Team 20 February 2019
The Supreme Court on Wednesday held Reliance Communication Ltd (RCom) chairman Anil Ambani and two directors of the group companies guilty of contempt of court. While directing Reliance Anil Dhirubhai Ambani group (ADAG) to pay Rs453 crore along with interest to Ericsson within four weeks, the apex court had also imposed a fine of Rs1 crore each on three companies of ADA group (ADAG).
 
This case was related with a contempt plea filed by Ericsson India over its pending dues of Rs550 crore from ADAG.
 
A two-judge bench comprising Justices Rohinton F Nariman and Vineet Saran also asked Reliance ADAG to purge contempt by paying Rs453 crore with interest to Ericsson within four weeks. If not paid, three months' jail term will follow, the bench said.
 
The bench directed the Court's registry to give Ericsson Rs118 crore that were earlier deposited by RCom. The apex court said the entire amount that RCom has to pay to Ericsson is Rs550 crore plus the interest that was generated.
 
The Court also imposed a fine of Rs1 crore each on RCom, Reliance Telecommunication and Reliance Infratel that would be deposited with the Supreme Court Legal Services Committee (SCLSC).

The two directors held guilty of contempt of the court are: Reliance Telecom chairman Satish Seth and Reliance Infratel chairperson Chhaya Virani. In case of default, chairpersons of all the three companies, including Mr Ambani, Mr Seth and Ms Virani, would have to undergo a sentence of one month each.

The bench ordered this as it did not accept the 'unconditional apology' tendered to the court by the RCom chairman.

Mr Ambani was present in the Court when the order was announced.
 
Last month, the Swedish telecom equipment maker has petitioned the apex court to punish Mr Ambani over recurring delays in payment of its dues worth Rs550 crore. Ericsson had accused the embattled businessman of engaging in 'gross and wilful contempt' of the apex court. 
 
The company had said that insolvency proceedings should be initiated against RCom and its spectrum and tower sale deal with Reliance Jio should be stopped 'with immediate effect'. 
 
In its second contempt plea, the Swedish company had also requested the apex court to bar Mr Ambani from leaving India for defaulting on payments.
 
Earlier in October 2018, Ericsson had filed its first contempt petition in the Supreme Court. At that time, RCom had stated that it sought another 60 days for the repayment of Rs550 to the Swedish company. 
 
Last week, the Supreme Court dismissed two court masters Manav Sharma and Tapan Kumar Chakaraborty for tampering with its order in Ericsson’s contempt plea against RCom and personal appearance of the company chief Mr Ambani.
 
According to reports, on 7th January, the apex court had directed Mr Ambani to make personal appearance through a notice. However, when the order was uploaded on the SC website, it read: “personal appearance of the alleged contemnor(s) dispensed with.”
 
More details soon...  
Comments
Praveen Sakhuja
6 years ago
will government be able to punish Anil? NO not the least. Anil will be scot free with some legal applications, public will find theiur oeyes wide spread tp know what happened.
K V RAO
6 years ago
Judiciary's activism is quite welcome. In fact, the business world is observing how the matter is getting unfolded. How come the judiciary is not that active with regard to bank borrowers? Very much needed. I also appreciate Ericsson' s efforts to conclude the issue with great perseverance.
VASANT KULKARNI
6 years ago
POOR ANIL . HE COULD HAVE GONE WITH NIRAV, MALLYA.
kpushkar
6 years ago
Real fun starts now...Welcome to real world..
Hope the steel company promoters also get to enjoy free meals ..You know where
Veeresh Malik
6 years ago
Body language is everything. All over Delhi there is a re-alignment of thinking on how everything could be gamed going on right now.
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