TDSAT Provides an Unexpected Relief from RCom

by Gaurav Bansal Company Registration Consultants in Delhi

The story

Considering that the oncoming bankruptcy is more likely to crush Anil Ambani, it is always nice to hear some stories that can provide him some relief. The TDSAT (Telecom Disputers Settlement and Appellate Tribunal) has ordered the Department of Telecommunication to cancel to its demands of INR 2000 Crore from the soon to be bankruptcy Telecom company.

This comes as a major form of relief for a company that is about to go bankrupt considering the upcoming fast tracked NCLT’s (National Company Law tribunal) CIRP (Corporate Insolvency resolution process) proceedings.

In the recent interview, RCom informed the media that the honourable Telecom Disputes Settlement and Appellate Tribunal (TDSAT) upheld its (RCom’s) petition against the department of Telecommunication’s decision to impose One-Time Spectrum Charge (OTSC) on RCom’s contracted GSM and CDMA resources.

Furthermore, the appellate tribunal has also directed the DOT to return the RCom’s Bank Guarantee of INS 2000 Crore, as per the order that it passed back on 3^rd July 2018.

A brief history about this matter

Back in 2012, the government had ordered that the telecom operators that hold GSM spectrum that exceeds 6.2 MHz will have to pay One-Time Spectrum charge from July 2008 to January 2013. For Telcos that have access to spectrums more than 4.4 MHz, they needed to pay the fee from January 1 onwards. Additionally Telcos with CDMA spectrum that go beyond 2.5 MHz were levied the fee as well.

This caused the government to demand about INR 24000 Crore from Telecom operators like Bharti Airtel, Vodafone India, Idea cellular, RCom, MTNL, BSNL and Aircel. In turn, the companies called them government out their petition to the TDSAT challenging the government’s decision.

The conclusion

All in all, it can be safely said that considering that just last week, RCom has decided to file for insolvency to the National Company Law tribunal (NCLT); this decision comes as a big relief. However, it is a humble reminder that even this amount is not going to save the firm from going bankrupt. However, this is sure to give RCom some form of levity considering they can now pay to the lenders who are asking for less than the amount DOT is now going to pay RCom.

Here you can read complete detail about RCom insolvency:

https://www.wattpad.com/689975765-insolvency-and-bankruptcy-news-seems-like-the-rcom