SC agrees to clear Rcom spectrum sale on the condition of submitting guarantee worth Rs 1400 crores within 2 days
Just when the deal between the Ambani brothers were hanging in between, Supreme Court cleared the air for Anil Ambani-led telecom firm. Anil proposed to sale asset to elder brother Mukesh Ambani's Reliance Jio Infocomm Ltd. SC directed the Reliance Realty, a subsidiary of Reliance Communication Ltd (RCom), to furnish ₹1,400 crore as corporate guarantee to the government within two weeks.
The decision was headed by Justice Rohinton Nariman, who asked the government to raise no issue and provide the company a no-objection certificate for the spectrum sale within seven days after the guarentee is submitted.
The court also added that a corporate guarentee backed by properties as assurance has already been submitted following an order of Telecom Dispute Settlement Appellate Tribunal, is sufficient for the government approval.
RCom in the previous hearing pleaded before a different bench that it would be impossibe for the company to submit Rs 2,940 Cr bank guarentees which was demanded by the Department of Telecommunications due to the insolvency proceedings against the company. It was willing to deposit land parcels instead of the bank guarantee.
The company added that if the government’s permission does not come on time, the deal to sell assets to Reliance Jio will collapse and banks will end up not getting any money.
In today’s hearing, Reliance Realty, which owns the properties submitted before the tribunal, will give the corporate guarantee in two days, lawyers Kapil Sibal and Mukul Rohatgi told the court, Bloomberg reported.