Government Refuses Protection To Jio Against RCom Past Liabilities

In a setback to the Reliance Communications and Jio’s Rs 15,000-crore spectrum and mobile tower deal, the centre refused to provide immunity to Jio from past-payment liabilities once the transaction is completed.

Jio has petitioned the telecom department to provide it protection from any dues that arise towards RCom for the period prior to the clearance of the deal; the report said citing a senior official in the telecom department.

The potential dues that could arise towards RCom are estimated to be around Rs 3000, the report said.

Jio is not confident about the strength of this corporate guarantee and wants a promise by DoT that no liabilities would flow towards it in case RCom’s guarantee is not found to be sufficient, or fails to deliver, said the report.

The DoT official, however, said that either of the two have to be responsible for the dues, whenever they arise, added the report.― CNBC TV18