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RCom unit furnishes Rs 1,400 cr corporate guarantee to Telecom Department

Press Trust of India  |  New Delhi 

Monday said its subsidiary Reliance Realty has furnished corporate guarantee of Rs 1,400 crore to as directed by the Supreme Court, stepping closer towards concluding its spectrum sale to Reliance

The on November 30, had asked the (DoT) to give a no-objection certificate (NoC) to to sell its spectrum to Reliance Jio, provided a corporate guarantee of the said amount is furnished by its group firm in favour of government.

"As per the order....of the of India, Reliance Realty Limited, a 100 per of RCOM, has submitted the corporate guarantee of Rs 1,400 crore to the DoT. As per the said order, DoT is to approve the spectrum trading within this week," said in a statement.

said that the proceeds from the spectrum deal will be used to clear the dues of and RITL (Reliance Infratel) minority investors, and added that Reliance Communications' asset monetisation blueprint is moving as per plan.

Late last week, a bench headed by Justice R F Nariman said the NoC would be given to Ltd (RCom), a Anil Ambani group firm, by the Telecom Department, if Reliance Realty furnishes the corporate guarantee within two days.

The order came on a petition filed by the against the order of (TDSAT) which had allowed to sell spectrum to Reliance without providing the of around Rs 2,900 crore to the DoT.

The TDSAT, in its last month order, had rejected DoT's plea seeking of around Rs 2,900 crore before it permits sale of RCom spectrum to Reliance

RCom has signed an agreement with Mukesh Ambani-owned to sell its spectrum and other telecom assets for an estimated Rs 25,000 crore and partially clear its debt of about Rs 46,000 crore.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 14:40 IST