Two days after the Supreme Court order, Anil Ambani's Reliance Realty, a 100% subsidiary of Reliance Communications (RCom) submitted a corporate guarantee of Rs 1,400 crore to the Department of Telecommunication (DoT).
Two days after the Supreme Court order, Anil Ambani’s Reliance Realty, a 100% subsidiary of Reliance Communications (RCom) submitted a corporate guarantee of Rs 1,400 crore to the Department of Telecommunication (DoT), which clears a big hurdle ahead of its deal with Mukesh Ambani’s Reliance Jio.
“As per the order dated November 30, 2018 of the Hon’ble Supreme Court of India, Reliance Realty Limited, a 100 percent subsidiary of RCOM has submitted the Corporate Guarantee of Rs 1,400 crore to the Department of Telecommunications (DoT),” RCom said in a statement.
On Friday, the apex court had asked RCom to submit a corporate guarantee of Rs 1,400 crore to DoT against the demand of Rs 2,900 crore, following which the DoT would give Non-Objection Certificate to the RCom-Jio deal.
“As per the said Order, DoT is to approve the Spectrum Trading within this week,” the company statement added.
The top court gave the decision on a petition filed by the DoT challenging the order of Telecom Disputes Settlement and Appellate Tribunal (TDSAT). Earlier, TDSAT had stayed the demand of guarantee of Rs 2,900 crore by the DoT.
The SC gave relief to RCom by reducing the amount of corporate guarantee and by ordering the DoT to give NOC upon receiving the guarantee of Rs 1,400 crore.
Last year, debt-laden RCom signed a deal with Reliance Jio for sale of wireless spectrum, tower, fibre and media convergence nodes assets as part of strategic debt restructure to pay back lenders. The proceeds from RCom-Jio will be used to clear a part of Rs 45,000 crore debt.
So far, the company has sold its media convergence nodes worth Rs 2,000 crore and optical fibre assets worth Rs 3,000 crore, PTI reported.