However, the Department of Telecommunications (DoT) stated it would solely settle for financial institution ensures for dues of about Rs 3000 crore and instructed that Jio might additionally make the cost on RCom’s behalf, authorized sources current in courtroom stated.
“RCom told the apex court that if DoT does not give an NOC (no-objection certificate) to the spectrum trading deal with Jio, then the deal will fall through. The operator argued that DoT should accept the land parcel as guarantee as per an earlier order, but DoT refused,” stated an individual conscious of the event.
Rcom didn’t reply to ET’s emailed queries looking for remark.
For Rcom, the spectrum deal is a vital a part of its total asset sale to Mukesh Ambani-owned Jio, which is able to assist the operator to scale back its debt of Rs 46,000. If the deal falls by way of, then RCom won’t be able to pay its dues to corporations like Ericsson inside the stipulated time then it heads into insolvency.
The SC has set December 15 as the following deadline for RCom’s cost to Ericsson.
According to a different supply, DoT’s authorized representatives even informed the apex courtroom that since it would solely settle for financial institution ensures and RCom says it can’t provide that , then possibly Jio might achieve this on the telco’s behalf.
Senior advocate Kapil Sibal assisted by advocate Mahesh Agarwal , appeared on behalf of RCom, whereas further solicitor normal P.S. Narasimha represented DoT. The matter can be heard on Tuesday as effectively.
The battle between the Telecom division and the Anil Ambani owned telco is over spectrum associated dues price Rs 2,947.68 crore and has been on since DoT’s reluctance to provide the Jio deal a go forward until the federal government recovers its dues.
In an interim order in October, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) directed DoT to “expeditiously” permit the provider to promote spectrum Jio with out financial institution ensures from Anil Ambani’s debt-laden telco. The tribunal additionally directed RCom to not promote a land parcel price Rs 1,400 crore “for the time being.” The land was slotted to be the assure towards the federal government’s demand for dues.
The DoT then moved a plea for modification of the order, saying it may’t settle for land as a assure, and as a substitute pressed for financial institution ensures. The TDSAT had rejected this plea for modification, and DoT moved the apex courtroom in one other bid to recuperate its dues.
RCom has been racing towards time to promote its spectrum to Jio, however the deal has been delayed primarily on account of DoT’s demand for dues earlier than clearing the buying and selling pact. As a consequence, RCom, which stated it would repay Ericsson, and HSBC Daisy Investments and minority shareholders from the Rs 975 crore that it’ll get from the Jio deal, has not been capable of meet its cost commitments. RCom has been given time until December 15 to repay Ericsson its dues.
Recently ET had reported that RCom which narrowly evaded being dragged out of business proceedings earlier this 12 months, knowledgeable Delhi High Court it has round Rs 17.86 crore throughout its 119-odd financial institution accounts, whereas its subsidiary, RTL, has only a shade over Rs 1.48 crore throughout its 25-odd financial institution accounts. This was throughout one other authorized tussle with American Tower Corp (ATC), for not clearing its dues.
RCom, below a debt of Rs 46,000 crore, is desperately making an attempt to promote its belongings to Jio and Brookfield for about Rs 18,000 crore. While fibre and switching nodes have gone to Jio for Rs 5,000 crore, spectrum and towers are but to be offered to the Mukesh Ambani-owned telco and a few actual property sale to Canadian asset administration agency Brookfield can also be pending.
Shares of RCom closed at Rs 13.32, up by 0.30% on the BSE on Monday.