Govt refuses to approve RCom’s spectrum sale to Jio until a bank guarantee is given by either firm
BS | Billionaire Anil Ambani’s Reliance Communications (RCom) told Supreme Court on Monday that its asset sale to Reliance Jio Infocomm may not go through if approvals aren’t in place by mid-December, putting at risk planned debt repayments by the distressed company.
The government, however, reiterated its stand in the Supreme Court that it could not grant an approval to RCom for spectrum sale to Jio until a bank guarantee of Rs 29.4 billion was given to it by either company toward spectrum usage charges.|Rcom Asset Sale
RCom, on the other hand, said that it was not in a position to furnish the said bank guarantee and that it had already given land worth nearly Rs 14 billion as security for the government’s dues. But the government refused to use the land given to it as security by RCom and said it would prefer a bank guarantee.
“If the spectrum sale is not approved, banks will also not get anything,” Kapil Sibal, a lawyer representing RCom, said in court said on Monday.
The top court was hearing a plea moved by the department of telecommunications (DoT) on Monday. In its petition, DoT told the Supreme Court that the Centre was looking for some kind of security from the company before it could allow the spectrum sale.
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