Telecom dept raises objections to Reliance Communications resolution plan

The department of telecommunications (DoT) has objected to the resolution plan of Reliance Communications, Reliance Telecom and Reliance Infratel in the National Company Law Tribunal (NCLT).

DoT, as an operational creditor, will not get any proceeds out of the resolution of the companies, according to the plan. The NCLT has adjourned the hearing on the resolution plan on the companies till August 21. The DoT will file written submissions by then.

The committee of creditors of Reliance Communication (RCom) approved a resolution plan, which involves lenders receiving Rs 23,000 crore. Jio and UVARC emerged has the highest bidders for the assets of RCom. Jio bid Rs 4,700 crore for the tower and fibre assets of Reliance Infratel Limited (RITL). The UVARC bid Rs 14,000 crore for spectrum, real estate assets as well as the enterprise and data center businesses, held in Reliance Communications Ltd (RCom) and Reliance Telecom Ltd. (RTL).As per the resolution plan, the Chinese lenders to RCom will receive Rs 5,500 crore.

While the lenders have passed the resolution plan for RCom and its subsidiaries, the NCLT is yet to give its nod to the plan. Meanwhile, a battle has ensued in the apex court in the issue of RCom’s spectrum. DoT can retain the spectrum with bankrupt telcos. RCom owes DoT Rs 25,199 crore, including spectrum usage charge and licence fees, representing half of RCom’s dues.