NCLAT refuses to direct SBI to release RCom funds to Ericsson

The National Company Law Appellate Tribunal on Friday refused to direct State Bank of India-led joint lenders’ forum to release Rs 260 crore of income-tax refunds of Reliance Communications to Ericsson India.

The tax refunds of Rs 260 crore for 2015-16, lying in the ‘Trust and Retention Account’ with SBI, the lead Bank of JLF, was required by RCom and its two group firms — Reliance Telecom and Reliance Infratel — to clear off their balance Rs 453-crore dues payable to Ericsson India by March 19, failing which promoter Anil Ambani will face jail term of three months.

This is as per the Supreme Court’s February 20 judgment which held the three companies guilty of contempt of court for failing to comply with its orders and undertakings given to the apex court in this regard.