RCom Can Proceed With the Planned Spectrum Sale to Jio After Relief from TDSAT

Reliance Communications (RCom), which yesterday stated that there would be a delay in repayment of Rs 550 crore to Ericsson, today confirmed that it has got relief from the telecom tribunal TDSAT. With this relief, RCom can now complete its planned spectrum sale to Jio and the amount which it will receive from the latter will be used to make payments to Ericsson India and RITL minority investors. RCom confirmed that it would receive Rs 975 crore from the sale of spectrum, of which it will pay Rs 550 crore to Ericsson and Rs 230 crore to Reliance Infratel (RITL) minority investors.

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“Reliance Communications has been granted relief by the…Telecom Disputes Settlement and Appellate Tribunal (TDSAT) vide its interim order dated 1 October 2018, whereby…TDSAT has stayed the demand of bank guarantee of Rs 2,900 crore by the Department of Telecommunications,” it said.

The Anil Ambani promoted RCom noted it had challenged the “unjustly sought security for the alleged demands” by the Telecom Department with regard to spectrum usage charges.

“After multiple hearings since August 28, 2018, the Hon’ble TDSAT, vide its interim order dated October 1, 2018, has stayed the said demand and directed DoT to expeditiously grant its approval for trading of the spectrum,” RCom added.

The debt-laden firm pointed out that 38 secured lenders of the group have already approved the sale of the said spectrum. “…and the proceeds thereof will be used for making payments to Ericsson India Private Limited and to RITL Minority Investors, as per settlement terms,” it said, as reported by PTI.