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New Delhi, February 20 (HE):In a big setback for Anil Ambani, the Supreme Court today ruled the Reliance group chairman and his two directors guilty of contempt for not deliberately paying 550 crore to Ericsson. Swedish telecommunications equipment manufacturer Ericsson filed three contempt suits against the Supreme Court for failing to pay its fees.
A group of judges, RF Nariman and Vineet Saran, however, asked RComNSE -5,83% and Ambani to purge their contempt by paying 453 million rupees to Ericsson in addition to a sum of 118 million rupees in court. The court has asked Ambani to pay 453 million rupees to Ericsson in four weeks, failing which he will have to serve a three-month prison sentence.
In addition, the Supreme Court imposed a fine of 1,000,000 rupees on the three entities of the Commission. It will also have to be filed within four weeks or the directors will spend one month each in prison.
The court rejected the unconditional apology of Rcom and Ambani, saying that they had shown a cavalier attitude towards the administration of justice.
"Reliance's unconditional apology can not be accepted given the depositor's attitude to the highest court in the country." Three Reliance companies had no intention of paying money, this is tantamount to an outrage, "said SC.
Ericsson brought an action for contempt of court by returning them to a civilian prison and also urged the court to seize Ambani's personal badets and recover his rights.
Ambani, who was instructed to attend the two-day hearing on the case of contempt of court, was present in court when the decision was rendered.
The court reserved its judgment on February 13, while Ericsson India had alleged that the Reliance group had money to invest in the contract with Rafale, but they were not able to repay his royalties of 550 crores of rupees. Company led by Ambani.
Ambani told the Supreme Court that in case of failure of the sale of badets with his older brother Mukesh, Reliance Jio, led by Ambani, his company had initiated insolvency proceedings and did not control the funds.
Reliance Communications (RCom) told the court that she had been trying to move "heaven and earth" to make sure that Ericsson was receiving its debt, but could not do it because of the failure of selling badets with Jio.
His lawyer, Mukul Rohtagi, had argued that Ambani could not be held personally liable for the royalties of a publicly traded company.
The contempt plea was filed against Ambani, Reliance Telecom's chairman, Satish Seth, Reliance Infratel's chairman, Chhaya Virani, and the chairman of SBI.
The insolvency proceedings against the company will now begin.
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