Indian telecommunications tycoon Anil Ambani thanks richer brother for payment to avoid jail

Time was running out for Reliance Communications to settle a US$80 million debt to the local unit of Ericsson AB

Anil Ambani made the court-set deadline after his much richer elder brother Mukesh and his sister-in-law came to the rescue

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Anil Ambani, chairman of Reliance Group. Photo: EPA

Published: 9:43am, 19 Mar 2019Updated: 10:04pm, 19 Mar 2019

Indian tycoon Anil Ambani averted a three-month jail term after his telecommunications company settled dues it owed the local unit of Ericsson AB just before a court-set deadline.

In a surprise twist, the embattled former billionaire thanked his brother Mukesh, and his sister-in-law, after Reliance Communications made the required 5.5 billion rupee (US$80 million) payment to Ericsson.

Repeated failures to pay and Anil’s personal guarantee landed him in trouble in February, with the top court giving him a month’s notice to comply or spend time in prison.

“My sincere and heartfelt thanks to my respected elder brother, Mukesh, and Nita, for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support,” he said in a statement from Reliance Communications. “I and my family are grateful we have moved beyond the past, and are deeply grateful and touched with this gesture.”

In 2002, Mukesh Ambani, left, and younger brother Anil got into a bitter feud over their father’s empire. Photo: AFP

The court order was a close call for Anil, whose telecom, power and infrastructure ventures are straining under debt. Bloomberg-compiled data show his net worth is about US$300 million, compared with at least US$31 billion in 2008, based on the current foreign-exchange rate. That marks a stunning fall for the scion of one of India’s most storied business families.