Anil Ambani gets rescue from brother Mukesh to avoid jail time

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Mukesh Ambani's gesture of bailing out his brother, Anil, is the last turning point in a saga of brothers and sisters who seized the telecommunications industry of India. A price war triggered by Mukesh in 2016 nearly wiped out Anil a year later.

Last month, the Supreme Indian Court sentenced Anil Ambani and his company, Reliance Communications, to pay 5.5 billion rupees ($ 80 million) to a Swedish mobile phone company. Ericsson (ERIC) from here Wednesday or face up to three months in prison.

Monday was coming to an end and the debt was unpaid. Then Mukesh Ambani, estimated at more than 50 billion dollars, intervened.

Reliance Communications said in a statement on Monday that it had made full payment to Ericsson, Anil Ambani thanking his brother and sister-in-law for their help.

"My sincere and sincere thanks to my respected elder brother, Mukesh, and Nita, for accompanying me in these difficult times and demonstrating the importance of staying true to our strong family values ​​by providing this support." timely, "he said.

Reliance Communications shares climbed 10% in Mumbai on Tuesday.

A spokesman for Mukesh Ambani's company declined to say how much of that 5.5 billion rupees it had provided, but local media reported a figure of about 4.8 billion ($ 70 million) .

A spokesperson for Reliance Communications did not immediately respond to a request for comment.

Mukesh, left, and Anil Ambani's fortune have taken very different directions in recent years.

Fraternal rivalry

The fraternal rescue is on strike because Mukesh Ambani played a role in the business development of his younger brother on the verge of collapse.

The billionaire of Mumbai He surprised India in September 2016 by launching a new mobile network called Reliance Jio, which offered its customers six months of free broadband Internet access.

This decision triggered a brutal price war, forcing some companies to exit the market, including Reliance Communications.

An Indian billionaire goes to court in bankruptcy after losing the 4G price war with his brother
The company of Anil Ambani, who was once one of the largest mobile phone players in India, announced in late 2017 that it would be relinquishing its main consumer telephony business to Reliance Jio in order to provide business data services.

This agreement has now been abandoned, the two companies announced on Monday. An Indian bankruptcy court will auction Reliance Communications' mobile assets to pay off the company's $ 7 billion debt.

The Ambani brothers had a tumultuous and often acrimonious relationship. After the death of their father in 2002, they waged a bitter battle of succession for control of the vast commercial Reliance empire that he had built for decades.

In the end, they divided Reliance's activities into sectors such as energy, retail and financial services. But their fortunes have taken very different directions since then.

Mukesh Ambani's fortune surpasses $ 54 billion, while his younger brother has left the billionaire club and is now only $ 300 million, according to Bloomberg.

In his statement on Monday, Anil Ambani said that the brothers and sisters had now settled their differences.

"My family and I are grateful to have gone beyond the past, and are deeply grateful and touched by this gesture," he said.

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