Anil Ambani is not a new name in the Indian business industry. He hails from an influential family and is the chairperson of a multi-crore business firm, i.e. Reliance Group Limited. The business chains Anil is linked with have their roots all over the world, and he is doing decent business.
Anil has his hands into the entertainment industry, telecom industry and other business verticals that have made him a successful and celebrated businessman across the globe.
But things aren’t the same anymore.
As per the latest reports, RCom is not doing the same business anymore, and Anil has shut down various enterprises to overcome the gigantic loses.
Things went really out of flow and Reliance Group, and its associates are in serious legal consequences.
The case between Ericsson and RCom is becoming the talk of the town and has taken a legal turn.
The reason why Anil got landed into severe consequences was the hefty amount of INR 458 crore which he was liable to pay to Ericsson AB.
In-depth analysis of what has happened
Reliance Limited and Ericsson AB got in a merger for business expansion on specific terms, and the duo worked together for a decent period of time. However at the end when it came to clearing the dues, Reliance Group failed to commit.
As per the reports, Reliance Limited has to pay a sum of 458 crores to Ericsson. On finding that Anil is unable to clear the dues; Ericson took a dig and plunged into legal consequences which came against Reliance Group. And the Supreme Court sentenced that Anil and his group have to clear the outstanding or a jail term will be convicted in case the payment is not cleared at the earliest.
A legal bench led by Justice RF Nariman divulged that RCom has already paid 118 crores from the outstanding and rest is to be paid along with interest. The overall calculated amount stands near 571 crores and after the clearance of 118 crores the remaining in 453 crores for which R Com is assigned with a timeframe of four weeks.
The court also observed that RCom group has the money and assets to address the balance since they chose not to pay them, said the court. The highly honorable court allotted another chance to RCom and its associate companies to purge themselves by paying the debt along with interest. Or Anil Ambani with his associates Satish Seth, and Chhaya Virani will bear the legal consequences and will be put behind bars for three months.
Additionally, these companies were fined with one crore each and in case of failure, a jail period of 1 month was sentenced to the aforementioned people. This fine was to be deposited to the Supreme Court Legal Service Committee.
In a detailed manner, the court cited that Rcom Group and other companies involved in this case have taken advantages of the days allocated, and still they didn’t pay the amount. The timeframe given to these companies was 120 days which were then extended with 60 days as per the legal norms.
The court also divulged that “It was seen right from the beginning that a sum of 550 crores was to be paid to the Ericsson Group, and RCom along with their associates have circumvented the situations by disclosing that they are only able to pay the debt after selling their assets.
The legal bench said that “this was done purposefully to make things more complex and the court took it as a deliberate statement against Reliance Group’s chairman Anil Ambani.”
These companies have no intention to pay the outstanding: Supreme Court
“It is entirely transparent that these companies have no intention to clear the debts, and also they delivered a deliberate statement which attracts some legal consequences and is also contempt of the court.”
“Also this is not a case of misunderstandings or unintentional disobedience, everything was done purposefully, and it is clear from the letter submitted on 21.09.2019.”
The letter also stated that Reliance Group is able to pay the balance but is willfully taking the things to another direction.
The final verdict
From the above-mentioned claims made by Sweden Brand Ericsson and hearings of the court, it was clear that RCom has to pay the debt or owners of these companies are going to jail.
But things took an unexpected turn as Mukesh Ambani (brother of Anil Ambani), and the wealthiest Indian plunged into the case and cleared the debts on behalf of Anil Ambani while saving his brother from legal consequences.
Industry watchers have told the media that this last moment bailout can be rewarding for the brotherhood of Ambani brothers and is a positive start between the two after a decade long period of strained ties.
Recently Anil was spotted enjoying the marriage of his nephew along with his wife and children.
Anil Stated that
“I am heartfelt that my brother supported me in the trying times and demonstrating the role of a true brother. I also bow my gratitude to Nita Ambani for standing strong by my family, and I am deeply touched by their gesture.”
After the demise of their patriarch, Anil and Mukesh were distributed by equal shares of the business. As per a report, Anil’s firm was worth $45 Billion which fell in a pothole of financial loses and is now $1.9 Billion.
Further, Anil stated that “RCom will try to commit itself with the promises and with the fulfillment of comprehensive resolutions to each lender. Also, the company will comply with the NCLT process and will adhere to its strict guidelines.