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SC asks RCom to pay spectrum liabilities of Rs 774 crore to the telecom department by May 2

Team SoOLEGAL 26 Apr 2018 3:07pm

SC asks RCom to pay spectrum liabilities of Rs 774 crore to the telecom department by May 2

New Delhi:  A Supreme Court bench of Justices  Adarsh Kumar Goel and Rohinton F. Nariman  granted time until  May  2 to Reliance Communication Ltd (RCom) to pay Rs774 crore towards deferred spectrum dues that it was supposed to pay by April 19.The company approached the SC after it pleas for deferring of dues for payment of spectrum charges were rejected by TDSAT in a hearing held on April 19.

RCom was due to pay for spectrum that it bagged in 2013 and 2015. In this respect an amount to the tune of Rs281.4 crore and Rs492.8 crore were due on 5 April and 19 April respectively. The counsel for Rcom in SC cited “unforeseen and uncalled for circumstances beyond their control” for plea for deferment of payment. The company said in SC that Government dues were fully secured as it has provided bank guarantees towards fulfillment of dues. Secondly, the Tribunal rejected its plea even when company made an offer to pay an interest of 2% above the prime lending rate of SBI for the delayed period. Third rejection of deferment plea by Tribunal has an adverse affect on debt restructuring that company is undergoing.

SBI which leads consortium of lenders said it is open to paying the dues provided no litigation holds the restructuring further.

RCom has debt of Rs 45,000 crore on its books. It has entered into a Rs25,000 crore deal with Mukesh Ambani’s Reliance Jio Infocomm Ltd for the sale of its assets mortgaged with different banks, to avoid insolvency proceedings. These include spectrum, media convergence nodes (MCN), real estate, towers and fibre assets.The SC has allowed sale of most of its assets, however towers and fibre assets sale is stuck and matter is with NCLAT,which is going to hear the matter next  on May 2.




Tagged: SC   RCom   Jio   NCLAT  
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