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RCom pays Rs 458.77 crore to Ericsson

Settling a long overdue payment, beleaguered telecom operator Reliance Communications (RCom) has paid Rs 458.77 crore to Swedish telecom equipment major Ericsson, potentially avoiding a three-month jail term for billionaire Anil Ambani.

The payment comes a day before the deadline set by the Supreme Court expires on Tuesday.

On February 20, the apex court had held RCom Chairman Anil Ambani and two directors of the group guilty of contempt of court and asked them to pay the amount within four weeks. Failure to comply with the order will invite a three-month jail term, the court had warned.

The Anil Ambani group on Monday paid the amount to the court, sources close to the development said.

When contacted, an Ericsson spokesperson confirmed the development.

Read More: SC to Anil Ambani, two RCom directors: Pay Ericsson ₹453 cr or face jail

It could not be immediately ascertained from where the company raised the funds, or whether it was paid from Anil Ambani’s personal accounts.

The Swedish company had dragged Ambani to court after RCom failed to clear its dues, and latter won the suit.

RCom had earlier deposited Rs 118 crore with the Supreme Court Registry from its operational funds, which was later handed over to Ericsson.

Earlier, Ericsson had moved the apex court seeking initiation of contempt proceedings against Anil Ambani for allegedly not complying with its order to clear dues of Rs 550 crore.

RCom’s deadline to pay Rs 550 crore to Ericsson ended on December 15, which was personally guaranteed by Anil Ambani.

Source: The Hindu