Deloitte, the resolution professional (RP) for Reliance Communications (RCOM) has reportedly told the National Company Law Tribunal (NCLT), Mumbai, that the telco’s insolvency process will go inoperative if the Department of Telecommunications (DoT) terminates its telecom licence due to unpaid statutory dues.
According to industry sources, the RP informed NCLT, Mumbai that DoT is unlikely to renew RCOM’s licence on July 27, 2021 when it expires, and if that happens, there will be nothing left in the carrier to sell. If the licence is cancelled, then RCOM will have to surrender its spectrum, which, in turn, will mean no recovery for its 53 lenders.
The NCLT has directed to send a notice to DoT and listed the matter for further hearing on July 13, 2021.
