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Reliance Communications alleges discrimination by govt on spectrum charge

Reliance Communications (RCom) says the department of telecommunications (DoT) discriminated against it for seeking a bank guarantee for one-time spectrum charges (OTSC) from it, whereas no such demand was made from Vodafone, which is merging with Idea Cellular. According to sources, RCom has written a letter to DoT, wherein the Anil Ambani-owned company cited media reports that conditional approval had been given to the Vodafone-Idea merger without insisting on any bank guarantee (BG) against the pending OTSC of Vodafone. ALSO READ: Manipal Tech withdraws bankruptcy plea against Reliance Communications


In 2015, RCom said, DoT had raised a demand for OTSC when it liberalised the administratively allocated spectrum. The company is now seeking immediate release of the Rs 20-billion bank guarantee it had given to DoT. An official in DoT denies the charges. He told Business Standard the two cases were different — RCom was not merging with any company. In its case, spectrum sharing and trading guidelines were applied; in that of Vodafone, merger and acquisition guidelines were implemented. RCom said DoT had demanded BG in 2015 despite the matter being a dispute in court. “Not only that, DoT has unilaterally increased the original OTSC demand, without any hearing or process, based on subsequent auction prices,” RCom alleged. ALSO READ: Reliance Communications gets bondholders' nod for asset sale to Jio DoT had raised a demand of Rs 39.26 billion in cash for liberalisation of Vodafone spectrum, whereas a BG of Rs 33.22 billion was sought from Idea Cellular as OTSC. RCom has alleged the OTSC dues of Vodafone are Rs 90 billion. Its letter says TDSAT, the appellate tribunal, had on July 3 directed DoT to return the BG to RCom. Its letter asks the department to do so, without filing any petition at the Supreme Court. Article By : Business Standard

Reliance Communications Alleges Discrimination by Govt on Spectrum Charge  

Read more about Reliance Communications alleges discrimination by govt on spectrum charge on Business Standard. Reliance Communications post...

Reliance Communications Alleges Discrimination by Govt on Spectrum Charge  

Read more about Reliance Communications alleges discrimination by govt on spectrum charge on Business Standard. Reliance Communications post...

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