The National Company Law Tribunal (NCLT) has approved the acquisition of Reliance Infratel Limited (RITL) by Reliance Property and Projects Management Services Limited, a subsidiary of Reliance Jio, which looks at its tower and fibre business. The move marks an end to RITL’s bankruptcy resolution process that has been going on since the past two years.
RITL has fibre assets spanning around 178,000 route km and 43,540 mobile towers across the country.
According to industry sources, Jio needs to deposit Rs 37.2 billion in a State Bank of India’s (SBI) escrow account to complete the acquisition process.
In early November 2022, Jio had moved the NCLT to speed up the acquisition of RTIL. The matter had been at a standstill due to the funds not receiving a consensus. Funds have to be distributed among the creditors including State Bank of India, Emirates Bank and Doha Bank among others.
The telecom company had urged the NCLT- Mumbai to allow RTIL’s creditors to get the no-dues certificates at the earliest.