RCOM & Subsidiary Face Partial Bank Guarantee Encashment by DoT

Reliance Communications Ltd (RCOM) and its subsidiary Reliance Telecom Limited (RTL) have received further communications from the Department of Telecommunications (DoT) regarding the partial encashment of Financial Bank Guarantees (FBGs). This action is due to outstanding License Fee dues for FY 2023-24, FY 2024-25, and FY 2025-26. The State Bank of India's FBG for RCOM, amounting to ₹5,73,49,933, is to be partially encashed by ₹5,55,42,271. Similarly, Bank of Baroda's FBG for RTL, valued at ₹2,00,00,000, faces partial encashment of ₹16,25,000. RCOM is currently examining the financial and legal implications of these actions, especially considering its ongoing Corporate Insolvency Resolution Process (CIRP).