Supreme court on Wednesday told Businessman Anil Ambani that he must pay his debts to Sweden’s Ericsson or he will go to jail.
Supreme Court said that Anil Ambani has disobeyed its earlier order for one of his companies, Reliance Communications Ltd., to pay Rs. 550 crore to Ericsson AB’s Indian unit. If payments aren’t made within four weeks, the 59-year-old tycoon will be jailed for three months, the court said.
Mr Ambani’s group said it will comply and pay the debt. Approximately 1 billion rupees have already been deposited with the court, which said the sum will be handed to Ericsson.
The dispute satrted when Ericsson sought to collect Rs. 1,600 crore from Reliance Communications. The Indian company settled the dispute with Ericsson in May last year, but failed to meet the payment deadlines.
Reliance Communications decided to enter bankruptcy proceedings earlier this year after struggling to repay its debt.
Reliance Communications had agreed to sell its airwaves, towers, fiber and other telecom assets to Reliance Jio in December 2017 for Rs. 17,300 crore to fend off creditors.
The telecom operator, which had $113.6 million in cash and equivalents as of September 30, may have to rely on the group for paying these dues.
On Wednesday fines were levied on three of Mr Ambani’s companies, reverberated across his business empire. Shares of Reliance Communications fell 4.2 per cent, Reliance Capital Ltd slipped 4.3 per cent and Reliance Infrastructure Ltd slumped 2.2 per cent. Reliance Power Ltd also declined.