RCOM: DoT Invokes ₹801.91 Cr Bank Guarantees for Spectrum Dues

Reliance Communications Ltd (RCOM) has informed the stock exchanges that the Department of Telecommunications (DoT) has invoked/encashed Financial Bank Guarantees (FBGs) totaling approximately ₹801.91 crore. These guarantees were furnished by various banks on behalf of RCOM towards deferred spectrum payment obligations. The DoT has stated that these actions are due to alleged defaults in payment of deferred annual installments for spectrum acquired in auctions held between 2013 and 2016. The invoked guarantees were issued by Yes Bank, Punjab National Bank, Canara Bank, and State Bank of India. RCOM is currently examining the detailed financial and legal implications of this invocation, including its impact on ongoing liabilities and claims, especially in light of the company's Corporate Insolvency Resolution Process (CIRP). Further developments will be disclosed as material.