BackRCom arm furnishes ₹1,400 crore guarantee to DoT
The Supreme Court on November 30, had asked the Department of Telecom (DoT) to give a no-objection certificate to Reliance Communications
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New Delhi: Reliance Communications on Monday said its subsidiary Reliance Realty has furnished corporate guarantee of ₹ 1,400 crore to Telecom Department as directed by the Supreme Court, stepping closer towards concluding its spectrum sale to Reliance Jio. The Supreme Court on November 30, had asked the Department of Telecom (DoT) to give a no-objection certificate (NoC) to Reliance Communications to sell its spectrum to Reliance Jio, provided a corporate guarantee of the said amount is furnished by its group firm in favour of government.
“As per the order....of the Supreme Court of India, Reliance Realty Limited, a 100 per cent subsidiary of RCOM, has submitted the corporate guarantee of ₹ 1,400 crore to the DoT. As per the said order, DoT is to approve the spectrum trading within this week," RCom spokesperson said in a statement.
RCom said that the proceeds from the spectrum deal will be used to clear the dues of Ericsson and RITL (Reliance Infratel) minority investors, and added that Reliance Communications’ asset monetisation blueprint is moving as per plan.
Late last week, a bench headed by Justice R F Nariman said the NoC would be given to Reliance Communications Ltd (RCom), a Anil Ambani group firm, by the Telecom Department, if Reliance Realty furnishes the corporate guarantee within two days.
The order came on a petition filed by the Telecom Department against the order of Telecom Disputes Settlement and Appellate Tribunal (TDSAT) which had allowed RCom to sell spectrum to Reliance Jio without providing the bank guarantee of around ₹ 2,900 crore to the DoT.
The TDSAT, in its last month order, had rejected DoT’s plea seeking bank guarantee of around ₹ 2,900 crore before it permits sale of RCom spectrum to Reliance Jio.
RCom has signed an agreement with Mukesh Ambani-owned Reliance Jio Infocomm Ltd to sell its spectrum and other telecom assets for an estimated ₹ 25,000 crore and partially clear its debt of about ₹ 46,000 crore.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed)
(Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.)
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