SBI snubs RCom; lenders refuse to release Rs 266 crore income tax refunds to pay Ericsson

The State Bank of India -led Joint Lenders’ Forum on Tuesday told the National Company Law Appellate Tribunal (NCLAT) Reliance Communications (RCom) should pay Ericsson on its own without saddling its past liabilities on lenders. The lender refused to release the Rs 266 crore worth of income-tax returns that RCom wants to use to pay the Swedish telecom equipment maker. Senior counsel Neeraj Kishen Kaul, appearing for SBI, argued the money did not belong to RCom. “RCom should pay Ericsson, but not at our cost,” he said.

“An ‘errant’ firm is wanting public money from the Retention and Trust Account formed in 2017, that is prior to initiation of any IBC proceedings against it, to clear its debts. No encumbrances can be created on the tax refund of `260 crore received in this account on which only the lenders have a lien. You gave undertaking to the SC and NCLAT,” Kaul told a NCLAT two-member bench led by justice SJ Mukhopadhyay.