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RCom raps creditor Ericsson for 'sensationalising' the debt issues

Ericsson India signed a seven-year deal in 2014 to operate and manage RCom's nationwide telecom network Romita Majumdar

Romita Majumdar  |  Mumbai 

Reliance Communication, RCom
Ericsson alleges RCom has sold its assets and the money received was not used to clear the dues

Reliance Communications (RCom) — the Anil Ambani-led and debt-ridden entity, now turned a real estate one — has criticised one of its creditors, Ericsson, for “sensationalising” the former’s

According to reports, India on Friday had moved the (SC) for initiating contempt proceedings for a second time against Ambani, chairman of This was for allegedly not complying with an earlier order to clear dues of Rs 550 crore. “An operational unsecured creditor is attempting a trial by and sensationalising issues, as evidenced in recent reports,” said an spokesperson.

India signed a seven-year deal in 2014 to operate and manage RCom’s nationwide network. It now says it has not been paid dues of over Rs 1,500 crore and has challenged at the National Company Law Appellate Tribunal (NCLAT). Also, it has asked the Union home ministry to stop Ambani, Reliance chairman Satish Seth and the head of Reliance Infratel, Chhaya Virani, from leaving the country.

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“The recent contempt petition filed by Ericsson, as referred in reports last week, has not even been served on RCom as of date. And, yet, is widely sharing the same with media and distorting issues. Needless to say, the has not even considered the matter till date,” said the RCom spokesperson.

On October 23, the had asked RCom to clear the dues by December 15, saying delayed payment would attract annual interest of 12 per cent. Ericsson alleges RCom has sold its assets and the money received was not used to clear the dues. It wants a direction to Ambani and the lenders forum to hand over Rs 550 crore with interest, as directed by the October 23 order, from the sale proceeds.


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Last month, RCom said it would make the payment to Ericsson after getting a no-objection certificate from the department of telecommunications for its spectrum sale to Mukesh Ambani’s (Anil’s elder brother) Jio. had adjourned an earlier hearing in the RCom-Ericsson matter to January 22, in view of the case pending before the

‘It also asked Reliance Infratel, an RCom arm, to file an affidavit within three weeks which details the payments due to HSBC Daisy Investments Mauritius, a minority shareholder. The company has to pay Rs 230 crore to the minority shareholders.

First Published: Sun, January 06 2019. 22:43 IST
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