NCLAT stays DoT show cause notices to RCom for cancellation of spectrum licence

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the two notices issued by the Department of Telecommunications (DoT) to debt-ridden Reliance Communications for cancellation of its spectrum licence for delay in payment.

A two-member bench headed by chairman justice S.J. Mukhopadhaya also stayed the DoT’s letter dated 20 March 2019 to Axis Bank to encash the bank guarantee of ₹2,000 crore given by the Anil Ambani group firm.

The appellate tribunal said the show cause notices to RCom and letter to Axis Bank by the government were against the order passed by it on 4 February, when it had granted protection against any asset sale without its permission.

“The show cause notices of 14 and 15 March and letter dated 20 March 2019 by DoT is against the direction passed by this tribunal,” the NCLAT said.