MUMBAI: Reliance Industries (RIL) said it is seeking “appropriate clarifications” regarding the telecom department’s letter on its unit, Reliance Jio‘s deal to buy spectrum from Reliance Communications (RCom)

RIL’s statement comes on the back of clarification sought by the stock exchanges after ET reported that the Department of Telecommunications (DoT) had rejected the trading pact, saying it didn’t conform to spectrum trading guidelines.

“The article … pertains to the application for trading of spectrum in the 800MHz band filed by Reliance Jio lnfocomm Limited, a subsidiary of the Company, and Reliance Communications Limited and Reliance Telecom Limited. A correspondence was received from DoT yesterday with respect to the application and we are seeking appropriate clarifications in this regard,” said the Mukesh Ambani owned company in a regulatory filing on Thursday.

BSE has sought a similar clarification from Anil Ambani-owned RCom but the telco did not respond till the time of going to press.

DoT’s refusal to give its nod to the spectrum deal was prompted by Jio’s letter sent to the telecom department last Friday where it sought assurance from the government that it won’t be held liable for RCom’s past dues related to airwaves.

This, the DoT says, is not in accordance with the government’s spectrum trading norms, which stipulate the buyer is liable for dues that haven’t been recovered from the seller.

RCom, under a debt of Rs 46,000 crore, is in a race to sell its assets to Jio and Canadian firm Brookfield for Rs 18,000 crore.

With the money from sale, the telco said it will pay its lenders, Ericsson and minority shareholders of tower unit-Reliance Infratel.

READ  NCLT stays order to withdraw Sterling SEZ’s insolvency resolution process

Only by paying Ericsson dues worth Rs 550 crore very soon, will the telco manage to stave off insolvency, since it has already missed two deadlines that were directed by the Supreme Court.



Please enter your comment!
Please enter your name here