Reliance Communication owned by Anil Ambani has been in news recently for it’s non payment of dues to Ericsson India Pvt. Ltd. Ericsson Indian Pvt Ltd, has recovered 550 crores of dues from Reliance Communications on May 18 after Anil Ambani made the payment. This amount constitutes nearly 50% of the amount that Reliance owed Ericsson for its services. This is after Ericsson initiated insolvency process against Reliance Communications in NCLT Mumbai for its dues. Anil Ambani feared the risk of imprisonment as a non bailable warrant was issued against him till Mr. Mukesh Ambani paid a sum of Rs 462 crores to Ericsson to protect Mr. Anil Ambani from imprisonment.
On the other hand, the JLF (Joint Lenders Forum) led by the State Bank of India are still trying to figure out ways to recover their dues worth Rs 46,000 crores from Reliance Communications. The JLF had taken a stand against the insolvency process and requested that they sell secured assets to recover the amount. This did lead to quashing of the insolvency process by the Supreme court in favor of out the court settlement but it hardly helped the banks as the deal of selling the spectrum and assets of Reliance Communications to Reliance Jio Infocomms worth Rs 37,000 crores fell through post objections raised by the Department of Telecommunications.
Now the banks are left ruing about their decision to opt for out of the court settlement and need to come out with a more concrete plan to recover their dues.