Ericsson drags Indian bank into RCom row - Mobile World Live

Ericsson drags Indian bank into RCom row

06 FEB 2019

Ericsson launched legal action against the State Bank of India (SBI) and filed another contempt petition on Reliance Communications (RCom) chairman Anil Ambani, expanding a row with the Indian operator over unpaid service charges.

The vendor, which has been embroiled in a lengthy legal row with RCom over more than $70 million in unpaid dues, filed a contempt petition against the chairman of SBI, which was the lead banker in an RCom asset monetisation plan designed to pull it out of debt.

Ericsson said in a filing to the Supreme Court that the bank had not fulfilled its assurances of settling RCom’s dues to the Swedish equipment vendor.

Freeze assets
Following news that RCom had begun insolvency proceedings with Indian authorities after failing to sell assets required to settle its debts, Ericsson has also reportedly filed a third contempt petition against Ambani.

A source told The Economic Times Ericsson has requested the Supreme Court freeze Ambani’s personal assets and prevent him leaving the country, following “multiple” breaches of court orders.

Ericsson has previously called for Ambani to be arrested.

The row between Ericsson and RCom deepened after the operator missed a series of court extensions to settle its debt.

Last month, RCom made a partial payment and said it would pay the full amount after the completion of the sale of assets.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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