Reliance Communication alleges DoT of bias for not seeking guarantee

New Delhi: Reliance Communication (RCom) has asked the telecom department to release back Rs 2,000 crore of bank guarantee taken from it for one-time spectrum charge, as no such demand was allegedly made while clearing the Vodafone-Idea deal

RCom said from reports it understands that the telecom department has not insisted on any bank guarantee against outstanding one-time spectrum charge demand of Vodafone.  “As you are aware, DoT had insisted on bank guarantee against the dispute OTSC demand of RCom at the time of 800 Mhz spectrum liberalisation of its administratively allocated spectrum in December 2015, despite the matter being sub-judice and despite stay being granted against the demand and circular by Calcutta High court,” said the company in a letter sent to  telecom secretary Aruna Sundararajan.

“We request DoT not to adopt any such discriminatory, inconsistent and unfair stand against RCom as compared to a completely opposite and favourable stand for Vodafone, and to instead release the bank guarantees of Rs 2,000 crore immediately,” RCom said.

The telecom department has demanded payment of Rs 3,976 crore for one-time spectrum charge from Vodafone India,  and a joint bank guarantee of Rs 3,342 crore before it grants final approval for the merger.

“The department is following the laid down rules as per relevant guidelines, including Merger and Acquisition Guidelines and Spectrum Liberalisation Guidelines. The representation of RCom is under examination,” Shambhu Nath Choudhary, director, media, DoT told a news agency. RCom said that the DoT demanded bank guarantee despite the matter being sub-judice.

“Not only that, the DoT has unilaterally increased the original OTSC demand, without any hearing or process, based on subsequent auction prices,” RCom alleged.

Telecom tribunal on July 3 directed DoT to return bank guarantee of Rs 2,000 crore, it said.