Reliance Communications (RCom) told the court they had tried to move “heaven and earth” to ensure Ericsson gets its due but was unable to do so due to failure of assets sale deal with Jio. Telecom equipment maker Ericsson India alleged in the Supreme Court that the Reliance Group has money to invest in the Rafale jet deal but they were unable to clear its Rs. 550-crore dues.
Anil Ambani told the top court that with the failure of its assets sale deal with elder brother Mukesh Ambani-led Reliance Jio his company has entered insolvency proceedings and is not in control of the funds.
Mr Ambani, Reliance Telecom chairman Satish Seth and Reliance Infratel chairperson Chhaya Virani, were present in the courtroom for two consecutive days in pursuance of contempt notice against them.
A bench of justices RF Nariman and Vineet Saran after hearing the arguments of all parties reserved its verdict on three contempt applications filed by Ericsson against Ambani, Seth, Virani and chairman of State Bank of India for not clearing its dues.
Allegations and counter-allegations flied thick and fast during the nearly day-long hearing in which senior advocate Dushyant Dave, appearing for Ericsson, demanded the court order forensic audit of Reliance and other companies to unveil the alleged fraud committed by them.
“They have money to invest in Rafale but cannot pay us our Rs. 550 crore dues. They do not want to commit to the undertaking given to the Supreme Court. Somebody, who cannot pay Rs. 550 crore to us is there in every conceivable deal,” Mr Dave said.
Referring to RCom’s statements made to the stock exchange on August 23 last year, about the sale of assets to Reliance Jio for around Rs. 5,000 crore, Mr Dave alleged RCom’s stock prices rose by 2 per cent in a single day which totalled thousands of crores, but the company had not bothered to pay Rs. 550 crore to Ericsson.