India
This move could make way for the RCom-Jio deal, which is a part of RCom's debt resolution plan. It is pending before the department of telecommunication (DoT) for approval
New Delhi: In what is clearly a case of conflict of interest, former telecom minister Kapil Sibal is battling to save the bank guarantee of RCom over Spectrum after the Narendra Modi government dragged RCom to court.
The centre approached the Supreme Court on Monday to recapitulate its demands of Rs 2,940 crore in bank guarantees from Reliance Communications Ltd (RCom) for its payment liabilities on spectrum. Justice AK Sikri admitted the petition and has set the next date of hearing on Tuesday.
This move could make way for the RCom-Jio deal, which is a part of RCom's debt resolution plan. It is pending before the department of telecommunication (DoT) for approval.
Additional solicitor general PS Narasimha told the court that the centre was looking for some kind of a security for the outstanding spectrum dues. He also added that the telecom guidelines clearly mandate the government to secure outstanding dues only by bank guarantees, and by no other method.
According to a LiveMint report, RCom’s counsel Sibal said the company was not in a position to make the payment as it was undergoing insolvency proceedings.
Lawyer for Reliance ADAG is Kapil Sibal. Unethical for him to represent this co as he is a former Telecom Minister. https://t.co/CisK2QMGWR
— Chandru (@ChandrusWeb)“I can’t give a bank guarantee. If this deal is not allowed to go through, a lot of entities will suffer. Banks who are secured creditors will be in jeopardy and the deal falls through,” he said.
”Centre moves SC seeking Rs 2,940 crore RCom bank guarantee over spectrum -
Reliance Communication Ltd (RCom), on the other hand, through its counsel Kapil Sibal, said the company was not in a position to make the payment”
via https://t.co/1kdj9JcSYD
The LiveMint report states that in August, RCom had said it had completed the sale of its media convergence nodes and related infrastructure assets worth Rs 2,000 crore, besides the sale of fibre worth Rs 3,000 crore to Reliance Jio. However, the spectrum sale was stuck after the DoT sought bank guarantees before clearing the transaction.
What makes it much more serious is the Congress stand on the Rafale deal. Many senior Congress leaders including Sibbal targeted the Modi government of favouring Anil Ambani and cried scam, though none exists. And now it's the same Sibbal who is defending Ambani in another case where it's the Modi government who is fighting Ambani.
Modi Govt fighting Anil Ambani in Court over Rs 2490 crore. Anil Ambani represented by former Telecom Minister Kapil Sibal! https://t.co/rI8TSZlnMt
— Tajinder Pal Singh Bagga (@TajinderBagga)Read Exclusive COVID-19 Coronavirus News updates, at MyNation.