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DoT to take the extreme step after not meeting regulatory requirement

New Delhi, NFAAPost: The Department of Telecomm­unications (DoT) is inching towards cancellation of the telecom licence of the Anil Ambani firm Reliance Commu­nications (RCom) over payment default.

It is learnt that a show-cause notice would be issued to the company, according to the procedure, before moving ahead with the cancellation of licence. According to DoT Reliance Communication, dues are close to Rs. 26,000 crores.

According to an official, clauses under the license agreement empower the government to terminate the licence of the company. Earlier this month, the company’s resolution professional had informed the National Company Law Tribunal.

But at the same time Reliance Communication received some relief from the Delhi High Court as its telecom license will continue for few days.

The Delhi High Court has asked the Department of Telecommunication not to cancel the Reliance Communication’s license for 10 days. Besides, the telecom operator has been asked to approach bankruptcy court for relief.

The Court’s directions are expected to provide some relief as its licenses are already expired on July 19, 2021, and the ministry refuses to extend the date further. Notably, RCom asked DoT not to cancel its license as the operator has been directed to submit its spectrum to the Department of Telecommunication.

It is important to note that Reliance Communication is planning to set the entire asset and planning to sell it. “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. “Operational dues are paid at time of resolution,” he added.

The tribunal has already cleared the sale of towers to the Reliance Jio unit, which is close to Rs. 5,000 crores. It is worth mentioning that Reliance Communication along with other operators has filed for bankruptcy due to growing competition.

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