DoT can't revoke RCom's licenses for 10 more days: High Court

Mumbai: The Delhi High Court has directed the Department of Telecommunications (DoT) not to revoke Reliance Communications (RCom) telecom licenses for another 10 days and has asked the defunct telco to approach the dedicated bankruptcy court for relief.

DoT on Tuesday told the court 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,” said Justice Rekha Palli.
The court’s directions on Monday will be of slight relief to Rcom’s resolution professional Deloitte, since the company’s 20 licenses were due to expire on July 19 and DoT had refused to renew it. RCom was seeking an interim order from the court to prevent DoT from cancelling its licenses which would have meant that it would have to surrender its most valued asset – spectrum – to the government, virtually killing its resolution process under IBC.
“Their horse has died by flux of time and they are seeking to revive it,” said a counsel representing DoT.
Now, RCom’s RP may head for National Company Law Tribunal (NCLT) but that is exactly where the case was for the last two weeks, till they appealed to Delhi HC.
RCom’s fate is close to the wire since if its license is not renewed , its entire asset monetisation plan falls flat , leading to big loss for lenders.
“My license was expiring. I have got a mandatory right under the government guidelines to get a migration,” said senior advocate Mukul Rohatgi, representing RCom. He pointed out to the court that the DoT was seeking operational dues which do not take priority over financial dues. “Operational dues are paid at time of resolution,” he added. The telecom department has pegged dues of at least Rs 26,000 crore against RCom.
Under the IBC proceedings, RCom’s CoC in March 2020 had cleared a resolution plan that would see asset reconstruction firm UVARCL pick up the company’s spectrum for Rs 12,760 crore, staggered over 12 years, with Rs 5 crore of upfront cash payment.
That is a big chunk of the Rs 20,000-23,000 crore expected from the sale of assets in RCom and its two units – Reliance Telecom and Reliance Infratel. Besides spectrum, the assets on sale include towers, fibre, enterprise business, data centres, and land.
Lenders’ claims under IBC had totalled over Rs 57,000 crore. But DoT, as an operational creditor, stands to recover only a fraction of its dues if and when the asset monetisation takes place under IBC.
The resolution plans for RCom and Reliance Telecom are yet to be cleared by NCLT. The tribunal though has cleared the sale of towers under Reliance Infratel to a Reliance Jio unit for nearly Rs5,000 crore, which though hasn’t been implemented yet.


Japan travel news, japan travel guides, japan holiday destinations and japan reviews

LATEST NEWS

NEWS RELATED

Reliance Jio is offering Buy 1 Get 1 offer to JioPhone users: Plans, benefits and more

Reliance Jio is offering a rather different recharge benefit to its JioPhone prepaid customers. As a part of the new offer, the telecom giant is offering Buy 1 Get 1 Free offer on all JioPhone available plans. What is JioPhone Buy 1 Get 1 offerWith the JioPhone Buy 1 Get…

Read more: Reliance Jio is offering Buy 1 Get 1 offer to JioPhone users: Plans, benefits and more

AMD Radeon RX 6600 XT GPU with up to 10.6 teraflops compute power launched, priced at $379

The 6600 XT is the newest member of the Radeon RX 6000 family AMD is looking to fill the 1080p GPU gap with a new member in the Radeon RX 6000 series family. The 6600 XT is the fifth card to be released in the series and is based on…

Read more: AMD Radeon RX 6600 XT GPU with up to 10.6 teraflops compute power launched, priced at $379

Elon Musk slams Apple and sides with Epic, calls 30% store fees unfair

Elon Musk tweeted out in support for Epic Games in the ongoing Apple and Epic lawsuit where the Fortnite maker alleged that the Cupertino technology giant was using its popular App Store as an illegal monopoly and took a 30 percent cut on every sale on its digital storefront. Apple…

Read more: Elon Musk slams Apple and sides with Epic, calls 30% store fees unfair

How to use the Terminal to see what Mac processes are accessing the internet

Use Terminal to see which processes are using your Internet connection

Read more: How to use the Terminal to see what Mac processes are accessing the internet

Google will stop account sign-in for users running old Android version

Google is ending sign-in support for devices running on very old versions of Android. The tech giant is sending email to users saying sign-in will not be supported on Android version 2.3.7 and lower. In order to continue using Google apps on their phones, they must upgrade to Android version…

Read more: Google will stop account sign-in for users running old Android version

1.3%, the number that 'troubled' Airtel across all 26 telecom circles in May

It may be just coincidence or something more, but all the 26 telecom circles of Bharti Airtel showed identical fall in subscribers at 1.3 per cent in May over April this year.As per the latest data, even the overall fall nationally for Airtel stood at 1.3 per cent. For every…

Read more: 1.3%, the number that 'troubled' Airtel across all 26 telecom circles in May

WordPress Download Manager plugin patches security flaw

The remote code execution vulnerability has now been fixed A security flaw in a popular WordPress plugin called WordPress Download Manager has now been fixed. The flaw allowed hackers to run and upload malicious files on the websites that ran the plugin. According to the security researchers at Wordfence, the…

Read more: WordPress Download Manager plugin patches security flaw

Microsoft faces subpoena in Google's antitrust case in US

Microsoft, which cooperated with the US prosecutors in building a 2020 antitrust case against Google, is now facing a subpoena to produce millions more documents at the request of Googles defense team, the media reported.According to a report in The Verge on Friday, judge Amit Mehta said that “more information…

Read more: Microsoft faces subpoena in Google's antitrust case in US

11th edition of EV Expo to be held in Delhi August 6-8

Delivery startup Gopuff valued at $15 billion after latest fundraising

Reliance Jio maintains its leads in subscriber numbers in Delhi: Trai

The Tech Weekender: Google's compliance report, Nothing Ear 1 launched, Google Search update cracks down on link spam, Facebook wants to build a 'metaverse', The PlayStation 5 sells 10 million units worldwide and 16-year old's will have a private account by default when they sign up for Instagram

Is RPA prone to cyberattacks?

Elon Musk says Apple is charging a global internet tax

Mastercard submits new audit to India after ban over data handling

Microsoft to invest in OYO before its potential IPO

OTHER NEWS