(Photo: Reuters)
(Photo: Reuters)

Supreme Court dismisses DoT plea in RCom spectrum sale

  • DoT wanted the responsibility of RCom's past dues be taken up by Jio after the spectrum sale
  • RCom had signed a 25,000-crore deal with Jio in December 2017 to sell wireless infrastructure assets

New Delhi: The Supreme Court on Tuesday dismissed the department of telecommunications’ plea against the Telecom Dispute Settlement Appellate Tribunal (TDSAT) order that had put the liabilities of past dues relating to spectrum usage charges (SUC) on Reliance Communications and not on Reliance Jio.

The TDSAT had ruled in February that the liability of past dues related to SUC rested only on Reliance Communications (RCom) and asked the government to reconsider its refusal to issue a no-objection certificate (NoC) to Jio’s spectrum purchase from Reliance Communications.

The DoT wanted the responsibility of the past dues be taken up by Jio after the spectrum sale.

It is unlikely that today’s Supreme Court order will affect RCom's spectrum sale, since the company which has piled up debts of 46,000 crore, is facing proceedings in insolvency court.

RCom had signed a 25,000-crore deal with Jio in December 2017 to sell wireless infrastructure assets, including cell towers and spectrum. The deal was extended till this year, when the DoT refused to issue the approval.

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