SC Passes Order in Favour of RCom, Directs DoT to Approve Spectrum Trade With Reliance Jio

Previously, the long legal battle between RCom and Department of Telecommunications (DoT) was ongoing because DoT was adamant on Reliance Communications providing bank guarantees worth Rs 3,000 crore before giving the green flag for Reliance Jio and RCom sale of spectrum. However, as per the latest update, Supreme Court has given a sigh of relief for the Anil Ambani led telco, as this deal would finally help the telco in paying off its debt of Rs 46,000 crore.

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SC Directs DoT to Approve Spectrum Sale to Jio

This comes as a huge burden off Reliance Communication’s shoulder as the spectrum trading deal with Reliance Jio would help the telecom operator in paying off its debt of Rs 46,000 crore to vendors like Ericsson. However, the stretched out legal tussle between the government meant that Reliance Communications wasn’t in a position to make a move. With the green flag finally in sight, now Reliance Communications will be on the path of paying off its debt.

In October, as an interim order, Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had directed DoT to “expeditiously” allow the carrier to sell spectrum to Jio without the need of bank guarantees from Anil Ambani’s cash strived telco. The tribunal also advised Reliance Communications against selling the land parcel worth Rs 1,400 crore “for the time being” which RCom was keeping aside as replacement for bank guarantees and as security for the spectrum trading deal.

Rs 1,400 crore Corporate Guarantees to Serve as Replacement