Reliance Communications Moves National Company Law Tribunal; Seeks Direction To DoT Not To Cancel Its Licenses

The resolution professional for the Anil Ambani-owned Reliance Communications, Deloitte, has moved the National Company Law Tribunal, seeking a direction to the Department of Telecom (DoT) to not terminate its licenses or take back its radio spectrum.

If the DoT takes away RCom’s licenses and spectrum, the telecom company which is in the process of selling its spectrum would not be able to do so.

As a matter of fact, DoT has argued that RCom’s licenses must be cancelled and the spectrum which is a national resource has to be returned to the government, due to non-payment of dues.

Recently, the lawyer engaged by RCom’s resolution professional Deloitte told the NCLT that applications have been filed to protect the radio spectrum which is the company’s most valuable asset. The NCLT bench was also informed that if termination of licenses goes through, then RCom would be left with no assets.

However, Assistant Solicitor General Ashish Mehta who represented DoT told the NCLT that no fresh termination or show cause notice has been sent to RCom.

Meanwhile, the NCLT urged the DoT to reply to the applications by RCom’s resolution professional shortly, while the resolution professional handling RCom’s affairs is expected to file its rejoinder after receiving DoT’s reply.

The matter is scheduled to be heard on September 30.

It may be recalled that the RCom and DoT fight over spectrum a flash point after the government sent a show cause notice to the company in February asking why airwaves (spectrum) should not be withdrawn from RCom, since it had not paid its dues.

Incidentally, any order favoring the DoT is expected to hit the asset sale process, which would hit RCom’s lenders who have put in claims worth nearly Rs 90,000 crore.