Erricson India Pvt. Ltd, one of the top three telecom companies in India, on October 1st, filed a contempt of court against Anil Ambani’s Reliance Communication Ltd. for not paying the dues within the stipulated time given by the Supreme Court of India. Reliance Communications Ltd (RCom) told the Supreme Court that it will settle its dispute over dues with telecom equipment manufacturer Ericsson India Pvt. Ltd in 10 days.
Swedish equipment maker, Erricson had signed a seven year deal with RCom in 2014 to manage its nationwide telecom network. In 2017, Erricson, under the Insolvency and Bankruptcy Code, moved NCLT after alleged non-payment of dues by RCom and group companies, Reliance Infratel and Reliance Telecom.
The Apex Court on 3rd August ordered Rcom to repay Rs 550 crore as a settlement amount against Erricson’s Rs 1,600-crore dues. The court set September 30th as the deadline for the repayment of due and after the order of 4th October, Reliance Communications Ltd (RCom) told the Supreme Court that it will settle its dispute over dues with telecom equipment manufacturer Ericsson India Pvt. Ltd in 10 days. In the meantime, the court put the insolvency proceedings initiated in May against RCom by Ericsson on hold, allowing the company to sell its telecom business to Mukesh Ambani’s Reliance Jio Infocomm Ltd.
RCom has a total debt of over Rs 46,000 crore. To shed off the debt, RCom has planned to monetize assets worth Rs 25,000 crore from their sale to Reliance Jio. It had signed a deal to sell its wireless spectrum, tower, fiber, and MCN assets to Reliance Jio Infocomm in December 2017. In August, RCom sold optical fiber assets worth Rs 3,000 crore and media convergence nodes (MCNs) and other assets worth Rs 2,000 crore to Jio.