Shares of Reliance Communications Ltd lost as much as 9.47% after the Supreme Court ordered the company to pay ₹550 crore to telecom equipment company Ericsson in four weeks.
Ericsson India Pvt. Ltd had moved the Supreme Court seeking initiation of contempt proceedings against RCom and its chairman Anil Ambani for wilful disobedience of its earlier orders to pay its dues. Ericsson had also sought Ambani be “detained in civil prison" unless the payment is made.
The telecom equipment maker asked the Supreme Court to direct Ambani to submit ₹550 crore along with interest of 12% per annum and urged that till such time his investment in firms, including Reliance Capital Ltd, Reliance Inceptum Pvt Ltd, and Reliance Innoventures Pvt. Ltd, be frozen.
This is the third time that Ericsson is seeking contempt proceedings against RCom to recover its dues.
The National Company Law Appellate Tribunal (NCLAT) had allowed Ericsson to file its objection by February 8 over RCom’s plea to proceed with the insolvency process.
Shares of other Anil Ambani group firms also faced the heat. Reliance Capital lost 10.26% intra-day, Reliance Infrastructure 8.76%, Reliance Naval & Engineering 8.57% and Reliance Power lost 5.53%.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.