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Don’t Act On RCom Showcause Notice Till August 10: TDSAT To DoT

RCom had recently approached TDSAT against the government’s showcause notice on spectrum and licence cancellation.

Pedestrians walk past a Reliance Communications Ltd. Mobile Store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
Pedestrians walk past a Reliance Communications Ltd. Mobile Store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Debt-ridden Reliance Communications Ltd. has got a temporary reprieve from Telecom Disputes Settlement and Appellate Tribunal till Aug. 10 on licence and spectrum cancellation showcause notice served by the Department of Telecom.

“If so advised, the respondent may file a reply or short reply by the next date and bring on record of the decision taken by them, if any. The respondent is directed not to give effect to the decision which it may take in the meantime,” TDSAT said in an order today. Posting the matter for directions on Aug. 10, the tribunal also instructed the telecom department “not to give effect to the decision which it may take in the meantime”.

The Anil Ambani-owned RCom had recently approached TDSAT against the government’s showcause notice on spectrum and licence cancellation. A source privy to the development told PTI that RCom informed TDSAT that the Rs 774 crore payment demanded by DoT has already been made to the government through encashment of previous bank guarantees. Hence, RCom only needs to renew the encashed bank guarantees, which anyway will be payable only in March 2019, the source added. So the claim on RCom of Rs 774 crore is merely to replenish encashed bank guarantees, the source added.

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