Centre moves SC seeking Rs 2,940 crore RCom bank guarantee over spectrum

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

Photo: Mint

New Delhi: The Supreme Court on Monday agreed to listen to the Centre’s plea for Rs 2,940 crore bank guarantee from Reliance Communication arising from excellent spectrum dues. The case was introduced earlier than a bench headed by Justice A.Ok. Sikri who mentioned it will be heard tomorrow.

Seeking that the bank guarantee be furnished, Additional Solicitor General P. S. Narasimha showing for the Centre instructed the court docket that it was in search of some form of securement. Reliance Communication Ltd (RCom), then again, by means of its counsel Kapil Sibal, mentioned the corporate was not able to make the cost.

“I can’t give a bank guarantee. Banks are secured creditors. They will be in jeopardy and the deal will fall through,” Sibal mentioned.

On 1 October, the Telecom tribunal had permitted the debt laden RCom to go forward with its spectrum sale to Reliance Jio Infocomm (Jio). The Anil Ambani-led RCom had challenged the “unjustly sought security for the alleged demands” by the Telecom division with regard to spectrum utilization prices.

Thereafter, RCom was given time by the apex court docket until 15 December to clear the pending cost of ₹550 crore in the direction of Telecom tools producer Ericsson India Pvt. Ltd. Delayed cost was to draw an curiosity of 12% each year.

The apex court docket’s ruling had come on a contempt plea by Ericsson for non-payment of ₹550 crore by RCom by the 30 September deadline.

In December 2017, as part of its debt decision plan, the Anil Ambani-led RCom struck a Rs 25,000 crore take care of elder brother Mukesh Ambani’s Reliance Jio for the sale of its belongings mortgaged with completely different banks, to keep away from insolvency proceedings.

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