A day left for Anil Ambani to pay USD 80 mn to avoid jail

the asian age

Business, Companies

The repeated failure to comply and Ambani's personal guarantee landed him in trouble last month,

Reliance Communications Chairman Anil Ambani. (Photo: File)

Mumbai: Reliance Communications Chairman Anil Ambani has around a day to piece together USD 80 million of USD 55 billion to settle long-pending levy with a vendor or go to jail.

Anil Ambani’s debt- ridden telecom business had promised to pay the nearby unit of Ericsson AB around Rs 5.5 billion for past maintenance services. The repeated failure to comply and Ambani's personal guarantee landed him in trouble last month, with the Supreme Court holding him in contempt.

His companies endured a misfortune last week after a lower court denied to free up tax refunds withheld by lenders.

In case the installment isn't settled by Tuesday, Anil Ambani, may face three-month imprisonment.

Ambani's net worth has contracted to around USD 300 million from USD 55 billion in 2008, according to Bloomberg, as his telecom to power and infrastructure businesses battle to bargain with debt by selling assets and fending off lenders.

A representative for the Anil Ambani didn't react to an e-mail asking for comments on ways to pay the Ericsson dues.

The Supreme Court on January 7 issued notice to Reliance Communication Ltd (RCom) Chairman Anil Dhirubhai Ambani and others on a contempt petition filed by Ericsson India over non-payment of its dues.

A bench headed by Justice R F Nariman had sought a response from Ambani and others in four weeks. Appearing for R Com, senior Advocates Kapil Sibal and Mukul Rohatgi had asked the court to accept Rs 118 crore towards outstanding dues to Ericsson India to establish its bonafide.

The counsel appearing for Ericsson had refused to accept the amount and said the entire outstanding sum of Rs 550 crore should be deposited. The bench had directed R Com to deposit a demand draft of Rs 118 crore in the registry.

(With PTI input)