Left Menu
Development News Edition

SC reserves order on Ericsson's contempt plea against RCom chief Anil Ambani, others


SC reserves order on Ericsson's contempt plea against RCom chief Anil Ambani, others

The Supreme Court Wednesday reserved its verdict on Ericsson India's plea seeking contempt action against Reliance Communications Ltd chairman Anil Ambani and two others for non-clearance of its Rs 550-crore dues. A bench of justices R F Nariman and Vineet Saran said it is reserving its verdict.

During the hearing, senior advocate Dushyant Dave, appearing for Ericsson India, said there was wilful disobedience of apex court's orders and contempt action should be initiated against them. Senior advocate Mukul Rohatgi, appearing for RCom, countered the argument and said no contempt was made as no orders of the apex court were violated.

Ambani, Reliance Telecom Ltd chairman Satish Seth and Reliance Infratel Ltd chairperson Chhaya Virani, were present in the courtroom. The court had on October 23 last year asked RCom to clear the dues by December 15, 2018, saying delayed payment would attract an interest of 12 per cent per annum.

The plea by Ericsson had sought that the court direct Ambani and the lenders forum to hand over the Rs 550 crore with interest from sale proceeds as per the October 23 order. On Tuesday, Dave told the top court that Reliance has committed contempt a number of times and they have not purged themselves.

He said that RCom violated two orders of the top court and even committed perjury by concealing information under oath. Rohatgi said the deal worth Rs 25,000 crore to sell assets of the telecom company to Reliance Jio has fallen through and now they are in insolvency.

Dave claimed that in its BSE filings Reliance has claimed that they have received Rs 3,000 crore and Rs 2,000 crore from sale of assets to different firms including Reliance Jio recently. Rohatgi said that money has not been received by Reliance.

On January 7, RCom had said that it would deposit two demand drafts of Rs 118 crore to establish its bona fide with the apex court registry and told the court that it would pay the remaining amount in due course. Besides seeking contempt proceedings against RCom chairman and two others, Ericsson had also sought that they be "detained in civil prison" unless they purge themselves by making the payment.

It had also sought directions to the Ministry of Home Affairs to prevent Ambani, Satish Seth and Chhaya Virani from leaving the country. The company had alleged that RCom has "wilfully and consciously" defied the order dated August 3, 2018 of the top court and the undertaking given before it to pay up by September-end last year.

Ericsson India, which had signed a seven-year deal in 2014 to operate and manage RCom's nationwide telecom network, had alleged that it had not been paid the dues of over 1,500 crore and challenged the debt-ridden firm before National Company Law Appellate Tribunal (NCLAT). The top court had perused last year's May 30 interim order of the NCLAT and noted that Ericsson India was willing to settle its debt of over Rs 1,500 crore for a sum of Rs 550 crore which was to be paid by RCom within 120 days.

It had on August 3 last year allowed RCom to sell assets covering spectrum, fibre, telecom towers and certain real estate assets for an aggregate value of approximately Rs 25,000 crore.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Beware! Maximum cyber criminals eye your personal data

A report of the World Economic Forum revealed that cyber security is increasingly becoming an issue of public security as the majority of cyber criminals are increasingly targetting individual internet users. This requires preventive measur...

WEF 2020: Trump seems politically correct in pulling out from Paris Agreement

If the survey of the World Economic Forum WEF is believed, Trump seems to enjoy the confidence of his people in flaying climate intuitions and climate activists. His preference for economic development over environmental protection not only...

From home to healthcare, here are Robotic innovations transforming lives

Lovot is equipped with more than 50 sensors such as thermography, microphone array, obstacle detection, and touch sensor to generate motion and emotions in real-time....

Translating words to deeds: Achieving gender parity in access to financial resources

... ...

Videos

Latest News

TVS Motor forays into electric two-wheeler segment; launches e-scooter at Rs 1.15 lakh

TVS Motor Company on Saturday said it has forayed into the electric segment with the launch of an e-scooter, priced at Rs 1.15 lakh on-road in the city. Equipped with 4.4 kW electric motor, the TVS iQube Electric can achieve a top speed of ...

Spacewalking astronauts close to fixing cosmic ray detector

Cape Canaveral, Jan 25 AP Spacewalking astronauts worked to complete repairs to a cosmic ray detector outside the International Space Station on Saturday and give it new life. It was the fourth spacewalk since November for NASAs Andrew Morg...

Bopanna, Nadiia progress to mixed doubles second round at Australian Open

Indias Rohan Bopanna and his Ukrainian partner Nadiia Kichenok moved into the mixed doubles second round at the Australian Open, here on Saturday. The Indo-Ukrainian pair beat Lyudmyla Kichenok of Ukraine and Austin Krajicek from USA 7-5 4-...

Harsh Vardhan holds high-level meeting, reviews preparedness against coronavirus

Union Health Minister Harsh Vardhan on Saturday held a high-level meeting in Delhi with senior officers of the Health Ministry, Indian Council of Medical Research ICMR and National Centre for Disease Control NCDC, to review the preparedness...

Give Feedback