New Delhi, February 20: The Supreme Court on Wednesday held Reliance Communication chairman Anil Ambani and two directors guilty of contempt of court on a plea filed by Ericsson India against him over not clearing its dues of Rs 550 crore.
RCom chairman and others will have to purge contempt by paying Rs 453 crore to Ericsson in 4 weeks, said the SC.
The SC said: “If Reliance Group is unable to pay amount in 4 weeks, they will undergo jail term of 3 months.”
The SC also told Reliance Telecom and Reliance Infratel to pay Rs 1 crore each in 4 weeks to apex court registry.
The SC directed that Rs 118 crore already deposited by Reliance Group in apex court registry be disbursed to Ericsson.
“From undertakings given by the Reliance Group’s top brass, it appears they have willfully not paid the amount to Ericsson despite orders,” said the SC.
The Supreme Court had last week reserved its verdict on Ericsson India’s plea seeking contempt action.
During the hearing, Ambani, Reliance Telecom Ltd chairman Satish Seth and Reliance Infratel Ltd chairperson Chhaya Virani were present in the courtroom.
On behalf of Ericsson India, senior advocate Dushyant Dave said there was wilful disobedience of the Supreme Court’s orders and contempt action should be initiated against Ambani and RCom officials.
Dave’s arguments were countered by senior advocate Mukul Rohatgi who contended no contempt was made as no orders of the court were violated.
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 annum.
Ericsson India had sought that the court should direct Ambani and the lenders forum to hand over Rs 550 crore with interest from sale proceeds as per the October 23 order. It wanted the three alleged contemnors to be “detained in civil prison” unless they paid the money in terms of the court’s order. It had also sought directions to the Ministry of Home Affairs to prevent Ambani, Satish Seth and Chhaya Virani from leaving the country.
Dave told the top court on Tuesday that Reliance had committed contempt a number of times and they have not purged themselves. RCom violated two orders of the top court and even committed perjury by concealing information under oath, he had submitted.
Rohatgi said the deal worth Rs 25,000 crore to sell assets of the telecom company to Reliance Jio had fallen through and now they were in insolvency.
The case file
- The SC had on October 23 last year asked RCom to clear the dues of Ericsson by December 15, 2018, saying delayed payment would attract an interest of 12% per annum
- Ericsson India counsel said there was wilful disobedience of the Supreme Court’s orders and contempt action should be initiated against Anil Ambani and RCom officials
- Senior advocate Mukul Rohatgi, on behalf of RCom and Anil Ambani, contented that no contempt was made as no orders of the court were violated
