RCom unit furnishes Rs 1,400 cr corporate guarantee to Telecom Department

Reliance Communications on Monday said its subsidiary Reliance Realty has furnished corporate guarantee of Rs 1,400 crore to Telecom Department as directed by the Supreme Court, stepping closer towards concluding its spectrum sale to Reliance Jio.

The Supreme Court on November 30, had asked the Department of Telecom (DoT) to give a no-objection certificate (NoC) to Reliance Communications to sell its spectrum to Reliance Jio, provided a corporate guarantee of the said amount is furnished by its group firm in favour of government.

"As per the order....of the Supreme Court of India, Reliance Realty Limited, a 100 per cent subsidiary of RCOM, has submitted the corporate guarantee of Rs 1,400 crore to the DoT. As per the said order, DoT is to approve the spectrum trading within this week," RCom spokesperson said in a statement.

RCom said that the proceeds from the spectrum deal will be used to clear the dues of Ericsson and RITL (Reliance Infratel) minority investors, and added that Reliance Communications' asset monetisation blueprint is moving as per plan.