If Anil Ambani can be made to pay, why not others?
The case of Anil Ambani Vs Ericsson is now well-known. Ericsson has successfully made Anil pay all his dues and interest by taking the case to court. The court had told Anil to pay the dues or face a jail term. Mukesh Ambani stepped in and saved his younger brother on Monday. Otherwise, Anil would have been jailed by now.
What explains the success of Ericsson vis-a-vis its debtors like Anil? "When a history of the early years of India’s 2016 bankruptcy code is written, Ericsson’s lawyers will deserve a glowing mention... It also shows the secured creditors, led by State Bank of India, in a rather poor light," columnist Andy Mukherjee has written for Bloomberg Quint. One can't agree more with his assessment.
When Anil Ambani can be made to pay, why not other defaulters? Where does the problem lie in India? Commentator and columnist Amitabh Tiwari says, "The whole episode shows how officials of Indian banks are hand in glove with the promoters. A creditor with Rs 550 Cr brought Anil Ambani to the knees. Big brother (Mukesh) had to bail out. Banks with thousands of crores of outstanding are clueless!"
Well, the message is clear.