Telecom department to challenge TDSAT order allowing RCom to sell spectrum without bank guarantee

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in its order dated 11 October, 2018, rejected plea of the Department of Telecom (DoT) seeking bank guarantee of around Rs 2,900 crore before it permits sale of RCom spectrum to Reliance Jio.

Press Trust of India October 29, 2018 19:28:29 IST
Telecom department to challenge TDSAT order allowing RCom to sell spectrum without bank guarantee

New Delhi: The telecom department will challenge the telecom tribunal TDSAT's order allowing Reliance Communications to sell spectrum to Reliance Jio without providing the bank guarantee.

"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 DoT official told PTI.

Telecom department to challenge TDSAT order allowing RCom to sell spectrum without bank guarantee

RCom. File photo. Reuters.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in its order dated 11 October, 2018, rejected plea of the Department of Telecom (DoT) seeking bank guarantee of around Rs 2,900 crore before it permits sale of RCom spectrum to Reliance Jio.

RCom signed an agreement with Mukesh Ambani-owned Reliance Jio Infocomm Ltd to sell spectrum and other telecom assets for an estimated Rs 25,000 crore and clear its debt of about Rs 46,000 crore partially.

However, the spectrum sale deal is stuck for clearance from the DoT for want of bank guarantee.

RCom in August completed the sale of its fibre assets and related infrastructure assets, worth Rs 3,000 crore, to Reliance Jio.

(Disclosure - Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)

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