RCom unit furnishes Rs 1,400 cr corporate guarantee to DoT to conclude spectrum sale to Reliance Jio
New Delhi: Reliance Communications on Monday said its subsidiary Reliance Realty has furnished corporate guarantee of Rs 1,400 crore to Telecom Department as directed by the Supreme Court, stepping closer towards concluding its spectrum sale to Reliance Jio.
The Supreme Court on November 30, had asked the Department of Telecom (DoT) to give a no-objection certificate (NoC) to Reliance Communications to sell its spectrum to Reliance Jio, provided a corporate guarantee of the said amount is furnished by its group firm in favour of government.
"As per the order....of the 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 DoT. As per the said order, DoT is to approve the spectrum trading within this week," RCom spokesperson said in a statement.
RCom said that the proceeds from the spectrum deal will be used to clear the dues of Ericsson and RITL (Reliance Infratel) minority investors, and added that Reliance Communications' asset monetisation blueprint is moving as per plan.
Late last week, a bench headed by Justice R F Nariman said the NoC would be given to Reliance Communications Ltd (RCom), a Anil Ambani group firm, by the Telecom Department, if Reliance Realty furnishes the corporate guarantee within two days.
The order came on a petition filed by the Telecom Department against the order of Telecom Disputes Settlement and Appellate Tribunal (TDSAT) which had allowed RCom to sell spectrum to Reliance Jio without providing the bank guarantee of around Rs 2,900 crore to the DoT.
The TDSAT, in its last month order, had rejected DoT's plea seeking bank guarantee of around Rs 2,900 crore before it permits sale of RCom spectrum to Reliance Jio.
RCom has signed an agreement with Mukesh Ambani-owned Reliance Jio Infocomm Ltd to sell its spectrum and other telecom assets for an estimated Rs 25,000 crore and partially clear its debt of about Rs 46,000 crore.
(Disclosure - Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)
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