The division of telecommunications (DoT) on Wednesday opposed the insolvency decision plan for Reliance Communications Ltd (RCom) and its unit, Reliance Telecom Ltd (RTL), claiming the proposal doesn’t give it a good therapy.
The shock DoT objection provides a brand new twist to RCom’s Rs 20,000-crore insolvency decision plan that its lenders submitted for Nationwide Firm Legislation Tribunal (NCLT) approval in March. The NCLT counsel on Wednesday requested DoT to file an affidavit detailing its objection.
Considerably, that is the primary time DoT had made its objections publicly identified.
The DoT objection comes after the Supreme Court docket lately requested the federal government to make clear the way it plans to get well dues from bankrupt telcos, which, aside from RCom, additionally embody Aircel and Videocon.
The courtroom has beforehand requested the federal government to research whether or not any bankrupt telco is misusing the insolvency course of to keep away from paying dues.
The Supreme Court docket can be listening to arguments whether or not such corporations may be allowed to promote spectrum held by them to repay dues.
UV Asset Reconstruction Co. Ltd (UV ARC) and Reliance Jio, the profitable bidders for RCom’s spectrum, actual property, enterprise, tower and knowledge centre enterprise, have collectively provided greater than Rs20,000 crore (on web current worth foundation) for these property.
On the time of submitting for chapter, RCom owed Rs46,000 crore to its monetary collectors alone, together with Indian and abroad banks, non-bank lenders and funds.
Over and above this, the division of telecommunications estimated RCom owes it Rs49,054 crore in unpaid spectrum utilization fees and licence charges; nonetheless, the agency’s decision plan recognises solely Rs25,199 crore of dues.
If the present decision plans by UV ARC and Jio are accredited, the DoT will get well little, since beneath Insolvency and Chapter Code, entities like DoT are operational collectors, that are second in line for dues after monetary collectors.
The case will probably be heard subsequent on 21 August.
Tanya Thomas and Prathma Sharma contributed to this story.