SC: Where have RCom’s assets disappeared in 2 years?

Aug18,2020
RELIANCE COMMUNICATION TELECOM LAW INSIDER INRELIANCE COMMUNICATION TELECOM LAW INSIDER IN

By Rupali Gupta-

On Monday, The Supreme Court has asked  RCom where have your assets disappeared in 2 years? Because the net worth of RCom in 2018 was Rs 37,000 crore and now we can see the huge decline in the net worth that it is now Rs 10,000 crore. So Supreme Court asked the response from the resolution professional in this matter.

Shyam Divan, Senior Advocate managing the affairs on the behalf of RCom in the court and the bench headed by Justices Arun Mishra, S Abdul Nazeer and M R Shah.

“The bench pointed out that the net worth of the company was around Rs 37,000 crore as that figure was mentioned in the apex court judgment of 2018 when the court was hearing the legal battle between RCom and Ericsson India over the clearing of dues “Where have the assets disappeared? There is a huge difference in the figure mentioned in the judgment and the current figure,”

“As per the resolution plan approved by the Committee of Creditors, the current value of the company includes a spectrum whose worth is in the range of Rs 6,900-7,500 crore. “We will try to reconcile the figures,” Divan said.

This the matter between the government and telecom companies focusing that how the companies facing insolvency proceedings would clear AGR dues.

The court is in dilemma that as Reliance jio is sharing its spectrum since 2016. So whether they can be directed to pay the dues on behalf of RCom. And RCom also owns Rs 31,000 crore to the government.

The Solicitor General Tushar Mehta told the court that there is a conflict of opinion on whether the spectrum could be sold under the insolvency proceedings between the two ministries one is a department of telecommunication (DoT) and another is the ministry of corporate affairs (MCA). He said DoT believes that spectrum is a natural resource owned by the government cannot be sold under insolvency proceedings and it is opposed by MCA.

Related Post