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Debt-ladden Reliance Communications (RCom) on Thursday said that it is “committed” to settle all dues and disputes, even as it awaits the Department of Telecommunications’ (DoT) consent for spectrum sales. The Anil Ambani-led company is also of opinion that it has complied with all spectrum trading guidelines.
RCom, being a continuing licensee with DoT, remains committed to discharging any outstanding or disputed amount subject to final adjudication, it said in a regulatory filing and media statements.
On the requirement of a bank guarantee as per DoT’s demand, which was substituted by the orders of Telecom Disputes Settlement and Appellate Tribunal (TDSAT), RCom said its subsidiary — Reliance Realty — had provided a corporate guarantee.
“Hence, compliance with the trading guidelines is met,” its statement added.
RCom is now hoping that DoT will comply with the Supreme Court order dated December 14, 2018, “in letter and spirit” and grant the long-awaited non-objection certificate or consent.
In the case filed by Swedish telecom equipment manufacturer Ericsson, seeking dues of ₹550 crore, RCom said that the matter had been adjourned to January 22, 2019. Separately, a case filed by HSBC Daisy Investments has also been posted for January 22.
“A copy of the detailed NCLAT order is awaited,” it said, without elaborating further.
RCom owes ₹550 crore to Ericsson, and the deadline to pay the debt ended on December 15. RCom Chairman Anil Ambani had also given a personal guarantee to settle the dues by December 15. HSBC Daisy Investment, along with a clutch of other investors, holds nearly 4 per cent stake in RCom subsidiary Reliance Infratel. The case was later moved to the NCLAT.
RCom now has to settle the dues, wrap up the cases pending before the NCLAT and get the DoT approval to sell spectrum before it can close the deal signed with Reliance Jio in 2017.
On Tuesday, Reliance Jio Infocomm (RJio), a wholly-owned subsidiary of Reliance Industries’, shot off a letter to DoT stating that the spectrum trading deal with RCom may only be approved if it settles all the liabilities.
RJio also said that RCom should be furnishing bank guarantees of ₹1,400 crore, rather than the corporate guarantees for the same amount it issued through Reliance Realty.
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