Reliance Communications’ resolution in limbo as DoT raises objection

The Department of Telecommunications (DoT) has objected to the resolution plan for Reliance Communications (RCom), as well as its unit Reliance Telecom, at the National Company Law Tribunal (NCLT), Mumbai.

The NCLT has adjourned its hearing on the resolution plan for the firms till August 21. The DoT will file written submissions by then. According to the resolution plan approved by lenders, the DoT will not get any proceeds following resolution of the companies, because it has been labeled an operational creditor.

The CoC, led by State Bank of India, approved of the resolution plan that involves lenders receiving Rs 23,000 crore. Jio and UV Asset Reconstruction Company (UVARC) emerged the highest bidders for RCom’s assets.