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Banks oppose RCom's proposal to use tax refunds to pay Ericsson dues

Tax refunds worth nearly Rs 260 crore, which RCom wants to use to pay Ericsson, lie in a bank account.

SBI, State Bank of India
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Aashish Aryan New Delhi
The troubles for Anil Ambani-led Reliance Communications (RCom) seem to be compounding as the company’s financial creditors, including the State Bank of India (SBI), have opposed its bid to withdraw tax refunds lying in a bank account.

Nearly 44 banks, including SBI are trustees of the bank account in which RCom’s tax refunds worth nearly Rs 260 crore lie. RCom wants to use these refunds to clear Ericsson India’s Rs 453 crore dues. The banks have, however, opposed RCom’s plea and said that the money due to Ericsson should come from an independent source and not from these refunds.

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First Published: Feb 27 2019 | 6:57 PM IST

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