It looks like Anil Ambani can’t seem to catch a break these days, as further bad news was in store for the younger Ambani, when financial creditors (led by SBI) of debt ridden Reliance Communications, which is undergoing insolvency proceedings, opposed his companies plea to appropriate an income tax refund worth nearly ₹ 260 crore lying in a bank account to clear dues owed to Swedish telecom equipment maker Ericsson.
Just last week on Feb 20th, the Supreme Court held Anil Ambani and two other directors guilty for contempt of court for willfully violating its orders and not paying ₹ 550 crore it owed to Ericsson. The apex court gave an ultimatum to Ambani and the other directors that if they do not pay ₹ 453 crore within 4 weeks, they will face a three month prison sentence.
Reliance Communications has already deposited a sum of ₹ 131 crores (net of tax ₹ 118 crores) with the Supreme Court registry. RCom’s lenders however, opposed the company’s plea saying that the refund amount of ₹ 260 crores should be used to pay their dues and that Ericsson’s dues should come from independent sources.