The Department of Telecommunications (DoT) has refused to renew Reliance Communications NSE -4.29 percent (RCom)'s telecom license until the company pays ₹26,000 crore in statutory debt. If the bankrupt telco fails to do so, it will be compelled to forfeit its spectrum, and the insolvency proceedings' asset selling plan will be thwarted.
“The Department of Telecommunications has notified RCom that it would not be able to renew telecom licenses unless earlier spectrum-related debts are paid. This came after the resolution professional (RP) informed the department that its dues are under a moratorium under the Insolvency and Bankruptcy Code, and it is not required to pay them,” said a source familiar with the situation.
RP has the ability to move TDSAT
RCom has written to the Department of Telecommunications, requesting a 20 year renewal of it's telecom license.
RCom possesses airwaves in the 850 MHz band in 14 of India's 22 telecom circles and has a pan-India telecom licence. Its licences are set to expire in July.
The telco, which was previously owned by Anil Ambani, is now being run by its RP, Deloitte, as part of an insolvency procedure under the IBC after it went bankrupt with a debt of Rs 46,000 crore.
According to a source familiar with the situation, the RP may file a new complaint with the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
(Source: https://economictimes.indiatimes.com)
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