Reliance Communications, Reliance Telecom have just Rs 19 crore in accounts

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Reliance Jio Overtakes Vodafone To Become 2nd Largest Indian Telco by Revenue

KOLKATA: Reliance Communications Ltd and its unit Reliance Telecom Ltd have solely Rs 19.34 crore in their mixed 144 financial institution accounts, the businesses stated in affidavits submitted to the Delhi High Court. The Anil Ambani-led firm, which shut down its wi-fi operations final yr below the load of Rs 46,000 crore in debt, slumping income and widening losses, revealed its financial institution holdings in a case filed by American Tower Corp. The Boston-based tower firm is alleged to be looking for dues of just about Rs 230 crore from RCom.

RCom, which narrowly evaded being dragged out of business proceedings this yr, knowledgeable the Delhi High Court that it has Rs 17.86 crore in 119 financial institution accounts, whereas its subsidiary RTL revealed it has a shade over Rs 1.48 crore throughout its 25 financial institution accounts. ET has reviewed the affidavits.

Both corporations, in affidavits filed in October, sought time from the courtroom to provide their financial institution statements. The subsequent listening to is on December 13. The tower firm’s claims from RCom and RTL “add up to almost Rs 230 crore towards exit fees and service charges”, an individual with information of the matter informed ET. The funds are for exiting tower lease agreements after RCom stopped wi-fi providers in December.

RCom’s Legal Battles

ATC had moved the Delhi High Court towards RCom and RTL in February, looking for a surety for its dues. However, RCom obtained a Supreme Court keep on November 1 on all funds as a consequence of ATC till the apex courtroom hears the matter, individuals aware of the event stated.

The date of the following listening to in the SC isn’t recognized. Separately, ATC filed contempt proceedings towards RCom for non-compliance with a Delhi High Court order dated December 6, 2017, directing the telco to furnish a Rs 88-crore financial institution assure in the direction of exit charges and different dues payable by Sistema Shyam Teleservices, which RCom acquired final yr. This matter is below arbitration.

At press time, ATC and RCom hadn’t responded to ET’s queries. RCom shares declined 1.8% to Rs 13.81at shut on BSE on Tuesday. RCom is already concerned in numerous authorized battles. The Supreme Court gave it till December 15 to pay Swedish tools maker Ericsson dues of Rs 550 crore plus curiosity. Ericsson has filed a contempt petition towards RCom chairman Anil Ambani for non-payment of the dues on time, regardless of a private assure, and the apex courtroom will hear the plea after December 15.

A dispute has additionally stalled RCom’s efforts to lift over Rs 18,000 crore by promoting its wi-fi property to Reliance Jio Infocomm and actual property holdings to Brookfield to assist repay monetary lenders and operational collectors together with Ericsson. While it offered switching nodes and its optic fibre community to Jio for Rs 5,000 crore, its spectrum sale has been caught as a result of the Department of Telecommunications hasn’t permitted the plan on account of a dispute over dues.

The division of Telecommunications is looking for Rs 2,947.68 crore in financial institution ensures from RCom to cowl spectrum utilization costs. Although the Telecom tribunal dismissed DoT’s pleas for the financial institution ensures final month, the division is prone to problem the order in the Supreme Court, additional delaying the RCom-Jio spectrum deal. In its affidavits, RCom revealed that on April 9, 2018, it had a Rs 19.46 crore credit score steadiness in one among its financial institution accounts, which was transferred to a belief and retention account maintained by State Bank of India.

The cash in this account, it stated, was used to pay the DoT charges for extending the validity of varied financial institution ensures for spectrum and licence. Payments from this account are audited by RCom’s lenders earlier than any cash is launched by SBI, it stated.

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