Published: Mon, March 18, 2019
Markets | By Otis Pena

Anil Ambani thanks Mukesh, Nita for timely support in clearing RCom dues

Anil Ambani thanks Mukesh, Nita for timely support in clearing RCom dues

Separately, Ericsson has received 4.62 billion rupees ($67.42 million) from Indian telecoms firm Reliance Communications Ltd, the Swedish company said on Monday, potentially saving billionaire Anil Ambani and two RCom directors from a jail term.

In its statement on the Ericsson payment, Anil Ambani thanked his billionaire brother "for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support".

RCom owes a total ₹5.71 billion to Ericsson, including a one-time settlement of ₹5.5 billion and interest payments of ₹210 million.

On August 3, the matter reaches the Supreme Court which orders RCom to pay Rs 550 crore to Ericsson towards the dues by September 30. Ericsson refuses and files contempt of court petition in the Supreme Court against Anil Ambani.

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.

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It could not be immediately ascertained from where the company raised the funds, or whether it was paid from Anil Ambani's personal accounts. Banks had opposed release of the tax refunds.

Reliance Group companies have sued HT Media Ltd, Mint's publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed.

The Court sets March 19 as the deadline and says a default would result in Ambani facing three months imprisonment. The highest court of India had also found his two directors guilty for not clearing its dues of Rs 550 crore to the Swedish company. The top court had also told him to be prepared to go to jail if he failed to clear the dues of Rs 453 crore within the next four weeks.

The payment made on Monday is expected to bring curtains down on the bitter and protracted face-off between Reliance Communications and Ericsson over the outstanding dues.

Shares of Reliance Communications fell by nearly 10 per cent on India's Bombay Stock Exchange at the close of markets Monday, just the latest sharp dip.

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