The business tycoon Anil Ambani got saved by his elder brother from going to jail.
Mukesh Ambani helped out his sibling Anil Ambani, who is the chairman of Reliance Communication Ltd. He cleared the debt that his company owed to Swedish company Ericsson.
What has happened?
Recently, Anil Ambani owner of Reliance Communication Ltd thanked his elder brother Mukesh Ambani (owner of Reliance Industries Ltd) a zillion times. This was because Mukesh helped him to pay off his dues of 550 crores. Yeah, not one or two crores, but a whopping 550 crores.
Supreme court had ordered Anil Ambani to pay off his debt to Ericcson including interest. The deadline was by March 19 or he would have to face jail time of three months.
However, with the help of his elder brother, he managed to clear the RCom debt by paying 458 crores a day before the deadline.
A heartfelt note from Anil Ambani
Anil Ambani was quoted saying, “My sincere and heartfelt thanks to my respected elder brother, Mukesh, and Nita for standing by me during these trying times and demonstrating the importance of staying true to their strong family values by extending this timely support. I and my family are grateful and deeply touched with their gesture.”
Knowing the fact that both brothers had fought a bitter public battle after their father Dhirubhai passed away without leaving a will. Their dispute was very serious and ended up splitting the company into two parts.
But the feud didn’t just stop there. It had created bitterness between two brothers and family. Thankfully, Mukesh Ambani knows family comes first.
Why did Anil Ambani had to pay 550 crores?
This battle between RCom and Ericsson started back in 2017. Claiming that RCom had not been paid dues of around Rs 1,500 crore under a signed deal, which was to operate and manage telco’s nationwide network.
After that, the case passed from National Company Law Tribunal (NCLT) to National Company Law Appellate Tribunal (NCLAT). Here, they came to a conclusion in which Rcom had to pay the one-time settlement amount of Rs 550 crores by September 30.
Sadly, Indian telecom company was unable to meet the deadline. That made Ericsson move to the Supreme Court. RCom received another deadline to pay-off the dues by December 15, 2018. And Anil missed that deadline as well.
The reaction of Ericsson
When the Swedish company didn’t receive the settlement amount, they filed three contempt petitions against Anil Ambani. In February (last month), the Supreme court held Ambani for not paying the dues despite that the fact that he has got money to do so.
But before taking any harsh actions Supreme Court decided to give one last deadline of March 19 to Anil to pay off his debt along with penal interests. Which he finally did with the help of his brother.
Anil Amabi would have landed in so much big trouble if he was unable to pay the RCom debts. It’s a good thing he has got a family who still had his back. This is a live example that -‘Your family will never leave you alone even if you don’t treat them right when you should.’