Reliance Communications (RCOM) has been granted relief by the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) vide its interim order dated 1 October 2018, whereby TDSAT has stayed the demand of Bank Guarantee (BG) of Rs. 2,900 crore by the Department of Telecommunications (DoT).
RCOM to receive Rs. 975 crore from sale of spectrum. RCOM to pay Ericsson Rs. 550 crore and RITL minority investors to be paid Rs. 230 crore from the spectrum trading proceeds as already approved by lenders.
RCOM had challenged the unjustly-sought security for the alleged demands by DoT (which are wholly disputed) for Spectrum Usage Charges (SUC). After multiple hearings the TDSAT, vide its interim order dated 1 October 2018, has stayed the said demand and directed DoT to expeditiously grant its approval for trading of the spectrum.
All 38 secured lenders of RCOM have already approved the sale of the above spectrum and the proceeds thereof will be used for making payments to Ericsson India and to RITL minority investors, as per settlement terms.