RCom, Ericsson case: Anil Ambani faces setback as Rs 453 crore payment deadline looms on 19 March

Anil Ambani's RCom group to pay Rs 453 crore in four weeks, by 19 March, failing which Ambani will have to go to jail.

Press Trust of India March 16, 2019 13:07:51 IST
RCom, Ericsson case: Anil Ambani faces setback as Rs 453 crore payment deadline looms on 19 March
  • Ambani's RCom group to pay Rs 453 crore in four weeks, by 19 March, failing which Ambani will have to go to jail.

  • NCLAT on Friday refused to direct the State Bank of India to release Rs 259 crore of income tax refunds for making payment to Ericsson

  • RCom has already paid Rs 118 crore to Ericsson.

New Delhi: Just days ahead of the expiry of the Supreme Court deadline to Anil Ambani to pay dues to Ericsson, the NCLAT on Friday refused to direct the State Bank of India to release Rs 259 crore of income tax refunds for making such payment, saying it does not has jurisdiction to do that.

The Supreme Court has asked Ambani's RCom group to pay Rs 453 crore in four weeks, by 19 March, failing which Ambani will have to go to jail.

"In an appeal filed under Section 61 of the 'I&Code' (insolvency and bankruptcy code), no direction can be given to any party to the settlement (particularly the third party) to perform certain duties to ensure settlement between other parties," NCLAT bench of Chairman Justice S J Mukhopadhyaya and member (Judicial) Justice Bansi Lal Bhat said.

It said that since the case in this regard is also before the Supreme Court, the NCLAT is "not vacating the interim order dated 30 May 2018, nor passing any direction to refund any amount to anyone or other party, till some order is passed by the Hon'ble Supreme Court".

RCom Ericsson case Anil Ambani faces setback as Rs 453 crore payment deadline looms on 19 March

Reliance Group chairman Anil Ambani. PTI

As per the interim order, the 'Financial Creditors/Joint Lenders Forum', with whom the assets of the RCom have been mortgaged, has been allowed to sell the assets of the company and deposit the total amount. However, if appeals before NCLAT are rejected, then lenders and creditors, including Ericsson, will have to return the total amount in the account of RCom for further proceedings.

Reliance Communications filed an appeal before NCLAT to direct SBI to release income tax refunds of Rs 259.22 crore that the company has received in trust and retentionship account, which is held at the public sector bank. SBI and other lenders to RCom had opposed the move.

RCom lawyer Kapil Sibal, during the hearing of the case, had said that the company will borrow rest of the amount from banks to make payment of Rs 453 crore to Ericsson.

RCom has already paid Rs 118 crore to Ericsson.

Updated Date:

also read

'Really impressed': CJI responds to schoolgirl's letter lauding SC for saving lives in COVID-19 fight
India

'Really impressed': CJI responds to schoolgirl's letter lauding SC for saving lives in COVID-19 fight

Lidwina Joseph, a student of Kendriya Vidyalaya at Thrissur, enclosed in her letter a drawing depicting discharge of duties by the apex court where a judge is seen hammering down the coronavirus

Copa America 2021: Brazil Supreme Court gives green light to tournament despite COVID-19 pandemic
Sports

Copa America 2021: Brazil Supreme Court gives green light to tournament despite COVID-19 pandemic

Various judges however ordered the government to take additional safety measures.

Explained: SC striking down Maratha reservation will keep the pot stirring over quota agitation
India

Explained: SC striking down Maratha reservation will keep the pot stirring over quota agitation

Calls for a fresh push for the demand have followed the Supreme Court's 5 May decision that held that total reservations cannot breach the 50 percent ceiling.