‘Give Bank Guarantee Of Rs 2,940 Crore’: SC Admits Centre’s Demand Over Spectrum Sale To Jio

A Supreme Court bench, headed by Justice AK Sikri, has agreed to admit the government’s petition to seek a Rs 2,940 crore bank guarantee from Reliance Communications before it proceeds to sell spectrum, as reported by Financial Express (FE).

The company, headed by Anil Ambani, had struck an agreement with Mukesh Ambani-led Reliance Jio Infocomm, to help partially clear its debt of Rs 46,000 crores. The deal, valued at Rs 25,000 crores, will allow Jio to buy spectrum and other assets of RCom.

However, Kapil Sibal, appearing for RCom, stated that it wouldn’t be able to furnish a bank guarantee. It instead has provided land, with a total value of Rs 1400 crores, to the government as security for its dues.

On 29 October, it was reported that the Department of Telecom (DoT) had challenged TDSAT’s decision that allowed RCom to go ahead with the deal without having to provide a bank guarantee. Telecom Disputes Settlement and Appellate Tribunal (TDSAT) was established in 2000 to provide a mechanism to adjudicate disputes and dispose of appeals in the telecom sector.

“The licence conditions do not provide for accepting any barter system. DoT will challenge TDSAT order that directs it to allow RCom sell spectrum with land as security,” a senior official with the DoT told Economic Times (ET).

Also Read: Why Jio Is Winning The Telecom War