RCom & RTL Face Partial Bank Guarantee Encashment by DoT

Reliance Communications Ltd (RCOM) and its subsidiary Reliance Telecom Limited (RTL) have received communications from the Department of Telecommunications (DoT) seeking partial encashment of Bank Guarantees. The DoT is requesting encashment due to non-payment of outstanding, non-litigated Spectrum Usage Charges (SUC) dues. For RTL, Punjab National Bank is asked to encash ₹9,72,222 out of a ₹1,45,37,000 Bank Guarantee. For RCOM, State Bank of India is asked to encash ₹65,602 out of a ₹2,08,21,000 Bank Guarantee. The total amount sought for encashment is ₹26,62,824. RCOM is currently examining the financial and legal implications of these demands, especially in light of its ongoing Corporate Insolvency Resolution Process (CIRP).