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Ericsson goes to SC wants Anil Ambani “detained”

Ericsson India Pvt Ltd moved the Supreme Court of India seeking contempt proceedings against Chairman of Reliance Communication Ltd (RCom) Anil Dhirubhai Ambani for not complying with its order to clear dues of ₹550 crore. This is the second time that Ericsson India approached the Supreme Court.

Apart from contempt proceeding Ericsson also wants Ambani to be “detained in civil prison” unless he made the payments.

Ericsson had approached the Ministry of Home Affairs to prevent Mr. Ambani, Reliance Telecom Ltd chairman, Satish Seth and chairperson of Reliance Infratel Ltd Chhaya Virani from leaving India.




The plea said :

“The contemnor named above having committed and guilty of contempt of court be directed to be detained in civil prison unless the aforesaid contemnors purge themselves by making payment of Rs. 550 crores along with interest thereon in terms of the order dated October 23, 2018″

The top court earlier on October 23rd 2018 asked RCom to clear dues by December 15th 2018, and delayed payment could attract 12% interest p.a.

It is alleged that RCom sold its assets and money received was not used to clear the dues but was “illegally pocketed”.



Ericsson India Pvt Ltd had signed a 7 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 the May 30 last year interim order of the NCLAT and noted that Ericsson India was willing to settle its debt of over ₹1,500 crore for a sum of ₹550 crore which was to be paid by RCom within 120 days.

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