Reliance Communications (RCOM) has told the Supreme Court (SC) that its insolvency process had started before the SC’s hearing and verdict on adjusted gross revenue (AGR) and thus it had no intention of evading clearing its AGR dues.
On the AGR liabilities of Sistema Shyam Teleservices Limited (SSTL), RCOM said that SSTL has a separate legal existence and only its telecom business was merged with RCOM, indicating that it is not responsible for SSTL AGR dues.
Further, RCOM told the apex court that it incurred losses during the past 10 years and hence the company has no AGR liability. The telco also informed SC that Department of Telecommunications’ (DoT) claims were admitted as operational debt under the corporate insolvency resolution process (CIRP).
The telco filed its affidavit a few days after SSTL said in its submissions that RCOM was liable to pay its over Rs 2,210 million AGR dues since SSTL had merged into RCOM in October 2017. However, RCOM indicated that it was not a legal but a business alliance.