RCom Admits to Furnishing Bank Guarantees of Rs 774 Crore, Also Contests DoT Notice in TDSAT Today

Ever since Reliance Communications got surrounded in the competition after 2016, the telecom operator has been battled down by trouble from all sides. In a new development involving its attempt to crawl out of the slump, RCom has told the Department of Telecommunications that it will furnish bank guarantees worth Rs 774 crores to sell spectrum to Reliance Jio Infocomm which will enable the telco to fulfil its repayment pending for the airwaves.

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Notably, the airwaves were bought by Reliance Communications in 2013 and 2015 auctions with the option of payment being made over 18 years. However, the current situations rendered the telco helpless with the amount. Now with the bank guarantees, the government can be assured of payment over a decade summing up to Rs 15,000 crore.

As informed by ET, a DoT official remarked about this new declaration, “There was a letter this week which assured the Department of Telecommunications that not only will bank guarantees of Rs 774 crore be taken care of but Jio will take care of the future spectrum related liabilities over the next 15-16 years.”

Back in April, the department had to encash bank guarantees submitted by Reliance Jio for Rs 900 crore after license breach by the carrier. The department also said that the telco hadn’t replenished its lapsed bank guarantees. All questions posed to the operator went unanswered. However, people aware of the matter said that RCom would likely furnish the bank guarantees for Rs 774 crores on Friday. On the same day, the telco will also go against the DoT in the Telecom Disputes Settlement and Appellate Tribunal for cancelling its licences.