Reliance Communications insolvency rescue plan hits DoT hurdle

The department of telecommunications (DoT) on Wednesday opposed the insolvency resolution plan for Reliance Communications Ltd (RCom) and its unit, Reliance Telecom Ltd (RTL), claiming the proposal does not give it a fair treatment.

The surprise DoT objection adds a new twist to RCom’s Rs 20,000-crore insolvency resolution plan that its lenders submitted for National Company Law Tribunal (NCLT) approval in March. The NCLT counsel on Wednesday asked DoT to file an affidavit detailing its objection.

Significantly, this is the first time DoT had made its objections publicly known.

The DoT objection comes after the Supreme Court recently asked the government to clarify how it plans to recover dues from bankrupt telcos, which, apart from RCom, also include Aircel and Videocon.