Delhi High Court Directs DoT Not To Revoke RCom License For 10 Days: Here's Why

Reliance Communication has finally 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.

On the other hand, DoT informed Delhi High Court that Reliance Communication is a dead horse. However, Justice Rekha Palli added that the petitioner should approach NCLT.

"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," she said.

Relief For Reliance Communication

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; however, in case its license is not renewed, so its plan to sell assets will remain flat.

"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. According to DoT Reliance Communication, dues are close to Rs. 26,000 crores.

Reliance Communication Assets Sale Details

Reliance Communication is planning to sell its assets in two units, i.e Reliance Infratel and Reliance Telecom. The company also wants to sell enterprise businesses, data centers, land, and towers. However, the National Company Law Tribunal (NCLT) has not cleared Reliance Communication and Reliance Telecom resolution plan.

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.