The Department of Telecommunications can charge Reliance Jio around Rs 13,000 crore as dues for adjusted gross revenues. Because the company had acquired 47.50 Mhz spectrum within the 800 Mhz bands from Reliance communications through a trading pact between January-March, 2016.
The spectrum was acquired across 13 circles and is currently being employed by Jio to produce 4G services. additionally, Jio is sharing spectrum with RCom in 15 circles. As such, a complete of 58.75 Mhz spectrum from RCom within the 800 Mhz band is currently being employed by Jio.
RCom’s total AGR dues are around Rs 25,194.58 crore and therefore the Supreme Court had, on August 14, asked the parties RCom Jio, and DoT. The SC asked the parties to present all related documents on Monday when the case is thanks to being heard again.
It remains to be seen whether the DoT submits, before the apex court, its letter dated May 20, 2016, granting approval to the spectrum trading between the 2 companies. The case as clause 6 letter reads: “The licensor reserves the correct to recover the dues which weren’t known to the parties at the time of the effective date of trade, from the client or seller, jointly or severally at its discretion on 12 October 2015”.
On January 20, 2016, Jio and Rom on their part gave an undertaking to the DOT. Jio had entered into a trading pact with RCom for the remaining 15 circles also for spectrum within the same band. Therefore, in 2018 that pact got annulled over the dispute between the 2 companies over giving an undertaking for any past Dues which can arise in the future.
Jio refused to administer any such undertaking and even RCom failed to provide any such undertaking as a result of which the DoT failed to approve the deal and subsequently RCom went into insolvency.
On August 14, the counsel for Jio told the court that the corporate has cleared the AGR dues of RCom for the traded spectrum post-2016, thus maintaining that it’s not responsible for past dues. For the shared spectrum the corporate said that only spectrum usage charge has to be paid which it’s paying
In February 2019 Jio source has maintained the order of the Telecom Disputes Settlement and Appellate Tribunal, in a very separate case, had ruled that Jio wouldn’t be chargeable for any past dues of RCom per them, even the Supreme Court had upheld this order of the TDSAT. However, the TDSAT order was with relevancy the second Jio-RCom spectrum trading deal where Jio had specifically refused to offer any undertaking to purchase any past dues of RCom at any stage. That only spectrum usage charge has to be paid which it’s paying.
