New Way To Renege On Agreement: It was Unauthorized! (RCOM)

1 Comment » Written on July 31st, 2014 by
Categories: RCOM, Suckered

If you thought that Reliance Communications screws up by sending you wrong bills, you might enjoy some poetic justice. From their QIP document:

7.2 In February 2002, SAIF Holding Limited (“SAIF”) and Reliance FLAG Telecom Ireland Limited (“RFTIL”) entered into a one year letter agreement, whereby, it was agreed that
RFTIL will pay SAIF a commission of 5% (five percent) of the cash revenue received by
RFTIL under the terms of the VPOP Agreement entered into between RFTIL and Pakistan Tele Communications Limited. This letter agreement was wrongfully renewed by unauthorized employee of the Company which resulted in the amount to be paid by RFTIL aggregating US$ 183,672 and the same has been claimed by SAIF. However, RFTIL has withheld such payments on the basis that the letter extending the agreement was issued from a non-authorized employee of the Company. SAIF filed a petition before the Islamabad Court. The matter is pending before court.

So someone from Reliance Flag renewed an agreement between them and Pakistan Telecom, and SAIF was supposed to be paid a commission. Reliance Flag now claims the person who renewed it wasn’t authorized to do so. And the case is pending for more than 10 years!

Next time you get an inflated bill, we encourage you to state that the person who made those phone calls wasn’t authorized to do so.

Note: Remember those real estate companies offering 100% return in three years? They also give you that 100% return assurance in a letter by a “senior employee”. You can bet your left lung that the employee is “unauthorized” to do so, if this eventually comes to court.

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The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@capitalmind.in.

One Response to “New Way To Renege On Agreement: It was Unauthorized! (RCOM)”

While at no point i can come to believe that RCOM could do anything ethical, this could just mean that the renewal was not backed by a valid board resolution (legal loophole exploited by RCOM).