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Mckinsey wants to shut down RIL and Reliance Communication over an alleged failure to settle Rs 27 Cr bill

Tuesday, July 24, 2007

Consultancy firm Mckinsey is suing both Reliance Industries and Reliance Communications for non-payment of dues amounting to Rs 27 crore. According to a petition filed by Mckinsey, Reliance Industries refused to pay the dues after Reliance Communications shifted to Anil Ambani.

As per Mckinsey’s petition, RIL, Reliance Communication owe $ 5.2 million for consulting work to Mckinsey which it did for Reliance Infocom in 2002, 2003. Reliance Infocom was to pay $ 3,25,000/month for consulting work. Bill was supposed to be settled after Reliance Infocom achieved revenue target of Rs 10,000 crore, the petition further says.

However, a letter from Reliance Comm. on April 18 said agreement with Mckinsey was illegal, uncertain and open ended.

Mckinsey further says RIL, Reliance Communication managements are mismanaging their companies and are unable to pay debts. RIL, Reliance Communication should be wound up and court should appoint official liquidator, Mckinsey demands.

“Company has neither reached timely target nor ended up using deliverables as envisaged,” Reliance Communications had said in their letter on January 2.

Posted by FR at 10:01 PM  

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