Anil Ambani and others breached their undertaking, the court said.
Shares of Reliance Group companies came under selling pressure after the Supreme Court found its promoter Anil Ambani guilty of contempt in Ericsson case. Reliance Communications (RCom) fell as much as 9.46 per cent to Rs. 5.45 on the BSE. Reliance Infrastructure declined 8.75 per cent to Rs. 111.50, Reliance Capital plunged 10.26 per cent to Rs. 135.95, Reliance Power slumped 5.53 per cent to Rs. 10.25, Reliance Naval and Engineering dropped 8.56 per cent to Rs. 8.22 and Reliance Home Finance tumbled 4.26 per cent to Rs. 24.70, after the Supreme Court ruling.
The Supreme Court said that Anil Ambani will go to jail for three months if he doesn’t pay Rs. 453 crore to Ericsson India within four weeks. The court tore into the Reliance Group chairman for a “cavalier attitude” and fined him and two of his directors Rs. 1 crore each.
“Anil Ambani and others breached their undertaking,” the court said, calling it “willful disobedience” of its order that they should repay Swedish telecom equipment maker Ericcson.
In a statement, a Reliance Communication Limited spokesperson said: “We respect the Supreme Court judgement. The RCOM Group shall comply with the same.”
Ericsson India signed a seven-year deal with RCom in 2014 to manage and operate its network. Last year, it went to the Supreme Court against Anil Ambani’s company over unpaid dues of Rs. 550 crore.