InvestorQ : Why Anil Ambani has been told to go jail if the dues are not paid to Ericsson?
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Why Anil Ambani has been told to go jail if the dues are not paid to Ericsson?

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Roshni Hegde answered.
1 year ago

This event will be counted as a piece of historic news. Industrialist Anil Ambani was held guilty of contempt today by the Supreme Court, it meant that he has to go to jail for three months if he defaults to make payment of Rs. 453 crore to Ericsson India and a fine of Rs 1 crore on the three RCom entities. This is in a conditional payment period of four weeks. Court also held its two directors guilty for failing in payment Rs 550 crore to Ericsson.
In the context of RCom and Ambani's case, the supreme court in its statement said that it is an unconditional apology by Reliance. The insolvency proceedings against the company will be continued further.
However, a Reliance Communication Limited spokesperson stated, that they respect the Supreme Court judgment and will adhere the same.

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ishika Banerjee answered.
1 year ago

Anil Ambani led- Reliance Communications (RCom) is again in news over the bankruptcy process. In order to form a committee of creditors, Anil Ambani has filed a motion in the National Companies Law Tribunal, a bankruptcy court.
The committee will appoint a resolution professional to take care of the bankruptcy process.
The initial insolvency proceeding is asked by the company to schedule from end-April 2018 to end-May 2019. As per the Insolvency and Bankruptcy Code, a resolution must be completed within 270 days.
RCom owns nearly 31 creditors. Majorly among all is the State Bank of India with around ₹500 billion.
The total count of sale value comes around ₹200 billion.
Due to the entry of Mukesh Ambani-led Jio in the market, the debt-ridden company has stopped its core telecom business two years ago.