Reliance Communications gets time till May 10 to pay deferred spectrum charges

By: | Published: May 5, 2018 3:37 AM

An apex court bench led by Justice AK Goel accepted RCom lawyer’s plea for ‘four more days’ to pay Rs 774-crore liability.

supreme court, reliance communicationsA bench led by Justice AK Goel accepted senior counsel KV Vishwanathan’s plea for grant of “four more days” to RCom to pay its liability.

The Supreme Court on Friday gave time till May 10 to Reliance Communications to pay Rs 774.19 crore towards deferred spectrum liabilities.

A bench led by Justice AK Goel accepted senior counsel KV Vishwanathan’s plea for grant of “four more days” to RCom to pay its liability.

Earlier, the apex court had granted the telco time till May 2 to pay while disposing of the company’s two appeals challenging the TDSAT’s April 19 judgments that refused to grant additional time to make the payment.

Lenders led by SBI have agreed to pay Rs 774 crore of deferred spectrum charges for RCom to prevent further litigation in the company’s debt takeover by Reliance Jio. The company is liable to pay Rs 281.4 crore and Rs 492.8 crore towards the deferred spectrum liabilities arising out of the spectrum acquired in 2013 and 2015, respectively. Last date for payment of `281.4 crore was April 5 and that of Rs 492.8 crore was April 19. RCom is yet to pay the 2017-18 instalment for spectrum auctioned in 2013 and 2015.

RCom had participated in the 2015 auctions and was successful in the 800MHz band, 900 MHz band and the 1800 MHz bands in certain service areas for which it made an upfront payment of Rs 1,104.09 crore.

Similarly, RCom’s predecessor Sistema Shyam Tele Services (SSTL) had emerged as a successful bidder in the 2013 spectrum auctions and an amount of Rs 1,626.3 crore was furnished upfront for the eight circles. An amount of Rs 780.8 was also paid towards two installments. Citing “unforeseen and uncalled for circumstances beyond their control,” RCom and its subsidiary Reliance Telecom had earlier stated that the non-extension of time would hinder the RCom’s debt restructuring being undertaken by them at the behest of the lenders and secured creditors.

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