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  Business   Companies  27 Jul 2018  Revoking RCom's spectrum may harm debt recovery process, says SBI to DoT

Revoking RCom's spectrum may harm debt recovery process, says SBI to DoT

THE ASIAN AGE
Published : Jul 27, 2018, 1:34 pm IST
Updated : Jul 27, 2018, 1:36 pm IST

SBI is inspecting the possibilities of providing bank guarantees to an extent of Rs 774 crore to RCom.

Rajnish Kumar has urged the Department of Telecom to revise its decision of revoking the licences of debt-laden telecom firms Reliance Communications and Reliance Telecom.
 Rajnish Kumar has urged the Department of Telecom to revise its decision of revoking the licences of debt-laden telecom firms Reliance Communications and Reliance Telecom.

Mumbai: The chairman of State Bank of India, which is India's largest lender, Rajnish Kumar, has urged the Department of Telecom to revise its decision of revoking the licences of debt-laden telecom firms Reliance Communications and Reliance Telecom.

The Anil Ambani-owned company RCom had recently approached the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the government's showcause notice on spectrum and licence cancellation, as per report from PTI.

 

State Bank of India is in the confederation of lenders to RCom, being the lead lender to the debt-ridden company, SBI is inspecting the possibilities of providing bank guarantees to an extent of Rs 774 crore to RCom on accredition from other creditors, as per report from Economic Times.

In a letter, written by SBI Chairman Rajnish Kumar to telecom secretary Aruna Sundararajan, he stated, "We request DoT to reconsider the decision to initiate coercive action including the revocation of spectrum allocation of the above companies which will help lenders in recovering the debts owed by Reliance Communications and Reliance Telecom Ltd."

As per the letter, dated 23rd July, "In the meantime, the lenders including are engaging with the companies to examine the possibility of reissue/extending the bank guarantees subject to, of course, all due internal approvals of respective banks." Kumar further added, “We may submit that any such action will seriously jeopardise the efforts of the secured lenders to recover their dues.”

 

As per State Bank of India, the accounts of Relaince Communications and Reliance Telecom has become non-performing assets in its book, and SBI with the consent of other lenders has kick started the debt resolution process and asset monetisation plans against RCom for the recovery of outstanding dues.

(With Inputs from Agencies)

Tags: state bank of india, reliance communications, reliance telecom, department of telecom, anil ambani
Location: India, Maharashtra, Mumbai (Bombay)