Ericsson snagged a sweet deal by exploiting RCom’s initial reluctance to enter in-court bankruptcy, and then getting a jail risk for Anil Ambani thrown into the mix.
The chairman of the Reliance-ADA Group did not pay Ericsson India its dues, and has now been directed to pay Rs 453 crore within four weeks, or face jail time.
In 2024-25, India exported $387.54 bn worth of services, against imports of $198.14 bn, earning all-time high surplus of $189.40 bn. This offset 2/3rd of goods trade deficit.
This world is being restructured and redrawn by one man, and what’s his power? It’s not his formidable military. It’s trade. With China, it turned on him.
Personally I am very happy that Dhirubhai Ambani’s son did not go to jail. Nor does one feel happy to see other high profile businessmen being put behind bars by an apex court that itself seems powerless to grant substantive relief to lenders, who can sometimes be thousands of middle class families that have made advance payments for under construction – sometimes even before physical construction starts – apartments to builders who have overextended themselves. 2. The economy is in a mess. Whole sectors – airlines, telecom, power – are in distress. This is not to deny that acts have been committed that warrant prosecution. However, that will not either get lenders their money back, nor restore sectors / the larger economy to health. That is the government’s job. Not easy to get it done with the present economic team or approach to the economy. 3. The general election is a diversion. Once the new government is sworn in, it should attend to the economy. The luxury of muddling through for another five years is just not there.
At least in this case the threat of being jailed got the tycoon to cough up what he owed. Maybe if a few more of such are jailed, including real estate tycoons possibly more middle class money will come back. Better then the same old of the middle class getting swindled with no chance of getting their hard earned money back.
Personally I am very happy that Dhirubhai Ambani’s son did not go to jail. Nor does one feel happy to see other high profile businessmen being put behind bars by an apex court that itself seems powerless to grant substantive relief to lenders, who can sometimes be thousands of middle class families that have made advance payments for under construction – sometimes even before physical construction starts – apartments to builders who have overextended themselves. 2. The economy is in a mess. Whole sectors – airlines, telecom, power – are in distress. This is not to deny that acts have been committed that warrant prosecution. However, that will not either get lenders their money back, nor restore sectors / the larger economy to health. That is the government’s job. Not easy to get it done with the present economic team or approach to the economy. 3. The general election is a diversion. Once the new government is sworn in, it should attend to the economy. The luxury of muddling through for another five years is just not there.
At least in this case the threat of being jailed got the tycoon to cough up what he owed. Maybe if a few more of such are jailed, including real estate tycoons possibly more middle class money will come back. Better then the same old of the middle class getting swindled with no chance of getting their hard earned money back.