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DoT can’t revoke RCom’s licenses for 10 more days: Delhi HC

The Delhi High Court has directed the Department of Telecommunications (DoT) to not revoke (RCom) telecom licenses for one other 10 days and has requested the defunct telco to strategy the devoted chapter court docket for reduction.
DoT on Tuesday advised the court docket that RCom is a “dead horse that is getting beaten to revive it unlike other telcos which still have their licenses valid.”

“I am of the view that the only remedy for the petitioner is to approach the NCLT…Accordingly, while permitting the withdrawal of the petition, the interim arrangement as directed on 19th July 2021 will continue for a period of 10 days,” mentioned Justice Rekha Palli.
The court docket’s instructions on Monday shall be of slight reduction to Rcom’s decision skilled Deloitte, for the reason that firm’s 20 licenses have been because of expire on July 19 and DoT had refused to resume it. RCom was searching for an interim order from the court docket to forestall DoT from cancelling its licenses which might have meant that it must give up its most valued asset – spectrum – to the federal government, just about killing its decision course of underneath IBC.

“Their horse has died by flux of time and they are seeking to revive it,” mentioned a counsel representing DoT.

Now, RCom’s RP could head for National Company Law Tribunal (NCLT) however that’s precisely the place the case was for the final two weeks, until they appealed to Delhi HC.

RCom’s destiny is near the wire since if its license isn’t renewed , its whole asset monetisation plan falls flat , resulting in huge loss for lenders.

(*10*) mentioned senior advocate Mukul Rohatgi, representing RCom. He identified to the court docket that the DoT was searching for operational dues which don’t take precedence over monetary dues. “Operational dues are paid at time of resolution,” he added. The telecom division has pegged dues of not less than Rs 26,000 crore towards RCom.

Under the IBC proceedings, RCom’s CoC in March 2020 had cleared a decision plan that might see asset reconstruction agency UVARCL choose up the corporate’s spectrum for Rs 12,760 crore, staggered over 12 years, with Rs 5 crore of upfront money fee.

That is an enormous chunk of the Rs 20,000-23,000 crore anticipated from the sale of property in RCom and its two models – Reliance Telecom and Reliance Infratel. Besides spectrum, the property on sale embody towers, fibre, enterprise enterprise, information centres, and land.

Lenders’ claims underneath IBC had totalled over Rs 57,000 crore. But DoT, as an operational creditor, stands to get better solely a fraction of its dues if and when the asset monetisation takes place underneath IBC.

The decision plans for RCom and Reliance Telecom are but to be cleared by NCLT. The tribunal although has cleared the sale of towers underneath Reliance Infratel to a Reliance Jio unit for practically Rs5,000 crore, which although hasn’t been applied but. Aajka Samachar

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