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SC holds Anil Ambani guilty of contempt, give month to pay dues to Ericsson or face jail

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[vc_row][vc_column][vc_column_text]Reliance Communications (RCom) chairman Anil Ambani and two directors in his company were today (Wednesday, Feb 20) held guilty of contempt by the Supreme Court for failing to pay Rs 550 crore dues owed to Swedish telecom giant Ericsson despite court orders and their undertaking to the court.

A bench of justices RF Nariman and Vineet Saran asked Ambani and the two directors to pay Rs 453 crore to Ericsson within four weeks, failing which they would face three months’ jail term.

The court also imposed a fine of Rs 1 crore each on them and if the amount is not deposited within a month, then 1-month jail will be awarded. The other two directors are Reliance Telecom chairman Satish Seth and Reliance Infratel chairperson Chhaya Virani.

It directed that Rs 118 crore already deposited by Reliance Group in the apex court’s registry be disbursed to Ericsson within a week.

The Court further held that the unconditional apology given by Reliance cannot be accepted, in light of its cavalier attitude towards the highest Court of the land.

RCom shares price dropped as much as 9.2 per cent to Rs 5.45 after the court order.

The court had reserved its judgment last week after hearing the two sides, during which senior advocate Dushyant Dave, representing Ericsson India in the case, had invoked the Rafale deal to target Ambani.

“They have money for Rafale. Somebody who is getting involved in every conceivable project has no money to pay Rs 550 crore to us and honour this Court’s order,” he told the bench. This was opposed vehemently by senior advocate Mukul Rohatgi, representing Anil Ambani

“To say that Anil Ambani gave a personal undertaking and that it was unconditional is a travesty of justice … It was conditional,” Rohatgi said. Rohatgi told the bench that the sale which was expected to net Rs 18,100 crore brought in only Rs 780 crore.

Dave submitted that this money from the sale was given to the Department of Telecommunications instead of Ericsson. Rohatgi replied that lenders had done this to keep the telecom licence alive as without that, there would be nothing.

He told the top court that with the failure of its assets sale deal with elder brother Mukesh Ambani-led Reliance Jio, Anil Ambani’s company has entered insolvency proceedings and is not in control of the funds.

RCom had told the court they had tried to move “heaven and earth” to ensure Ericsson gets its due but was unable to do so due to failure of assets sale deal with Jio.

However, the Supreme Court Bench slammed Ambani for his “cavalier attitude” and “wilful disobedience” of the court’s earlier orders to pay the dues Reliance Communication owed to Swedish telecom Ericsson company.

The court said it wasn’t sending Ambani to jail straight away, despite finding him guilty of contempt and willful disobedience of its orders because the bench felt that “the contempt can be purged by clearing the payments with interest.”

CJI Gogoi sacks two SC officials for changing order on contempt case against Anil Ambani

The Bench dismissed their “unconditional apology” for disobeying the orders of the highest court of the country.

“RCom had no intention to abide with the undertakings… Undertakings were false to the knowledge of the RCom and group companies. This amounts to contempt of court,” Justice Nariman said while reading out the judgment.

The contempt petition was filed by Ericsson, contending that Reliance had committed gross contempt by disobeying orders of the Supreme Court, which had directed it to pay Rs. 550 crores to Ericsson towards settlement of dues.

On August 3, the Supreme Court had ordered that the payment of Rs. 550 crore be made on or before September 30.

Subsequently, Reliance sought an extension of time for making the payment, which was allowed by the Supreme Court. On October 23, the Court said that as a “last opportunity”, it will allow Reliance to make the payment along with interest before December 15, 2018.

Before the expiry of the said date, Reliance once again filed an application for extension of the deadline, but the same was withdrawn on December 14 after it realized that the Court was not inclined to entertain the application.

Ericsson thereafter sought the initiation of contempt proceedings against Reliance Communications and Anil Ambani for violation of the Supreme Court orders of August 3 and October 23.

In the petition filed through advocate Bhargava V Desai, Ericsson had prayed that Anil Ambani, Chairperson of Reliance Communications, be detained in civil prison till the dues along with interest are cleared.[/vc_column_text][/vc_column][/vc_row]

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MK Stalin predicts frequent PM Modi visits to Tamil Nadu before assembly election

MK Stalin has said Prime Minister Narendra Modi will visit Tamil Nadu more often ahead of the Assembly election, calling the tours politically motivated and questioning the Centre’s support to the state.

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MK Stalin

Tamil Nadu Chief Minister M. K. Stalin has predicted that Prime Minister Narendra Modi will increase his visits to the state as the Assembly election, expected in April or May, draws closer.

Speaking ahead of the polls, the DMK president said the Prime Minister has already begun touring Tamil Nadu and is likely to visit frequently in the coming months. He claimed that such visits could create discomfort within the BJP-led National Democratic Alliance (NDA), as alliance partners may fear the political impact of repeated appearances.

Stalin calls visit politically motivated

The Chief Minister described the Prime Minister’s scheduled programmes in the state as “politically motivated”. PM Modi is set to attend various events in Madurai in southern Tamil Nadu, including the inauguration of the first phase of the AIIMS hospital project. He is also expected to visit the Thiruparankundram Temple amid the Karthigai Deepam-related controversy and participate in a public meeting organised by the NDA.

Stalin said he has been working for all sections of the population, including those who did not vote for his party. In contrast, he remarked that some leaders are visible in the state only during election time and increase their visits as polls approach.

Criticism over Union Budget allocations

The DMK leader also criticised the BJP-led central government, accusing it of neglecting Tamil Nadu. He pointed out that while approval was recently granted for the Gujarat Metro project, there were no major announcements or allocations for Tamil Nadu in the Union Budget.

Stalin asserted that voters would remember the lack of significant measures for the state. He framed the upcoming election as a contest between Tamil Nadu and the NDA, stating that the state should be governed from Fort St George in Chennai rather than from Delhi.

The ruling DMK is currently allied with several smaller parties and, at present, the Congress, as it seeks a third consecutive term in office. Its principal rival, the AIADMK, is aligned with the BJP as part of the NDA.

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Shashi Tharoor questions Centre over Kerala name change to Keralam

Shashi Tharoor has criticised the Centre’s decision to approve renaming Kerala as Keralam, questioning its impact and pointing to the lack of major projects for the state.

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shashi tharoor

Congress MP Shashi Tharoor has criticised the central government over its decision to approve the renaming of Kerala as ‘Keralam’, arguing that the move prioritises symbolism over development.

Reacting to the Union Cabinet’s approval, Tharoor said that the state’s name has always been ‘Keralam’ in Malayalam and questioned the practical impact of introducing the Malayalam term into English usage.

“It has already been ‘Keralam’ in Malayalam. So now, a Malayalam word is coming into English. I don’t know what difference it makes,” he said, adding that the state has not received major projects such as an AIIMS or new institutions from the Centre. He also pointed out that no significant allocations were made for Kerala in the Union Budget.

In a separate post on X, Tharoor raised what he described as a “small linguistic question” about what residents of the state would be called if the name change is implemented. Referring to existing terms such as “Keralite” and “Keralan”, he remarked that alternatives like “Keralamite” sounded like a microbe and “Keralamian” like a rare earth mineral.

The Union Cabinet, chaired by Prime Minister Narendra Modi, cleared the proposal on Tuesday. The move comes ahead of the upcoming state Assembly elections, in which 140 members of the legislative assembly are to be elected. The poll schedule is yet to be announced by the Election Commission of India.

The state assembly had earlier passed a resolution seeking the change in official records. Chief Minister Pinarayi Vijayan had moved the resolution in 2024, urging the Union government to adopt the name ‘Keralam’ in all languages listed in the Eighth Schedule of the Constitution.

He had stated that the demand for a united Kerala for Malayalam-speaking people dates back to the national freedom movement.

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Tamil Nadu potboiler: Now, Sasikala to launch new party ahead of election

Sasikala has announced the launch of a new political party ahead of the Tamil Nadu Assembly elections, positioning herself against AIADMK chief Edappadi K Palaniswami.

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In a significant political development ahead of the Tamil Nadu Assembly elections, expelled AIADMK leader V. K. Sasikala has announced that she will float a new political party and contest the polls by fielding her own candidates.

Speaking in Madurai before heading to Pasumpon for a public event, Sasikala said she would unveil her party’s flag later in the evening. She indicated that more details regarding the party’s structure and plans would be shared at the gathering.

The event venue carries political symbolism. Pasumpon is the birthplace of Thevar leader Muthuramalinga Thevar, and Sasikala herself belongs to the influential Thevar community in southern Tamil Nadu. The programme was held as part of birth anniversary events of former Chief Minister J. Jayalalithaa.

Direct challenge to EPS

Sasikala’s move is being viewed as a direct political challenge to AIADMK general secretary Edappadi K. Palaniswami (EPS). After Jayalalithaa’s death in 2016, Sasikala briefly took control of the party and had appointed Palaniswami as Chief Minister. However, following her conviction in the disproportionate assets case, she served a four-year prison term, and during that period, she was expelled from the party.

Palaniswami later aligned with O. Panneerselvam, whom Sasikala had earlier removed from the Chief Minister’s post. The two leaders subsequently adopted a dual leadership arrangement within the party and government.

Sasikala remains disqualified from contesting elections until 2027 due to her conviction. Nevertheless, she has stated that she intends to field candidates under her new party banner.

Fragmented Thevar vote base

Over the years, expulsions within the AIADMK — including Sasikala, her nephew TTV Dhinakaran and O Panneerselvam — have led to divisions within the Thevar support base. Political observers have linked this fragmentation to the party’s weakened electoral performance in the elections following Jayalalithaa’s passing.

While Dhinakaran has returned to the NDA fold, reports suggest Palaniswami is opposed to any arrangement that includes Sasikala or Panneerselvam. OPS, meanwhile, has exited the NDA.

Sasikala has repeatedly criticised Palaniswami, describing him as a betrayer, while he maintains that his leadership stems from the support of AIADMK legislators rather than her backing.

The AIADMK has not issued an official statement on Sasikala’s announcement. However, a senior party leader questioned her political standing, pointing out her disqualification from contesting elections and referring to legal issues linked to Jayalalithaa’s death.

With the Assembly polls approaching, Sasikala’s re-entry into active politics could further complicate the opposition space in Tamil Nadu and influence electoral calculations, particularly in the southern districts.

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