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Friday, 30 November 2018 08:42

Supreme Court permits RCom-Jio spectrum trading deal

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The Anil Ambani owned Reliance Communications (RCom) gets some relief as Supreme Court on 29 Nov allowed it to go ahead with its spectrum trading deal with Mukesh Ambani’s Reliance Jio Infocomm (Jio). This is a big relief to Anil Ambani who must clear a debt of Rs 46,000 crore. 

As reported earlier, Rcom and telecom department were in a legal battle for months over spectrum related dues in which Department of Telecommunications (DoT) had said it will not allow the spectrum trading deal to go through if it does not get its bank guarantees worth Rs Rs 3000 crore.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT), in October, directed DoT to “expeditiously” allow the carrier to sell spectrum Jio without bank guarantees from Anil Ambani’s debt-laden telco. The tribunal also directed RCom not to sell a land parcel worth Rs 1,400 crore “for the time being.” The land was slotted to be the guarantee against the government’s demand for dues.

However, the DoT then moved a plea for modification of the order, saying it can’t accept land as a guarantee, and instead pressed for bank guarantees. The TDSAT had rejected this plea for modification, and DoT moved the apex court in another bid to recover its dues.

RCom has to repay to Ericsson and HSBC Daisy Investments.

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