Will settle dispute with Ericsson in 10 days, RCom tells Supreme Court

NEWDELHI:Reliance Communications Ltd (RCom) told the Supreme Court on Thursday it will settle its row over dues with telecom equipment manufacturer Ericsson India Pvt. Ltd in 10 days. The court was hearing a contempt plea by Ericsson for non-payment of ₹550 crore by September 30 deadline.

RCom had moved SC on March 19 seeking a stay on orders by Bombay high court and the Mumbai bench of the National Company Law Tribunal (NCLT), barring it from selling its wireless assets to Reliance Jio without the court’s prior approval. The firm was joined as a co-petitioner by State Bank of India, which moved the court on March 20 seeking approval for sale of RCom’s assets to Reliance Jio.

The National Company Law Appellate Tribunal (NCLAT) on May 30 stayed a corporate insolvency resolution process initiated against Anil Ambani-owned RCom and two group firms, Reliance Infratel and Reliance Telecom. NCLAT’s order came after Ericsson India, which had initiated the insolvency proceedings, accepted RCom’s offer to pay ₹550 crore by September 30.

Ericsson had signed a sevenyear deal with RCom in 2014 to operate and manage its nationwide telecom network. After alleged non-payment of dues since 2016, Ericsson moved NCLT under the Insolvency and Bankruptcy Code against RCom and group firms Reliance Infratel and Reliance Telecom, in September 2017.