Anil Ambani-led Reliance Communications’ deal to sell its telecom assets to Mukesh Ambani’s Reliance Jio has run into a hurdle after the National Company Law Tribunal (NCLT) restrained RCom from disposing off or transferring any assets.
Reliance Jio had agreed in December to buy debt-laden RCom’s telecom assets and the transaction was originally set to have been likely completed by this month end.
Hearing a petition by Swedish telecom equipment maker Ericsson, the NCLT ordered, “We direct that the claimant and its affiliates are restrained from transferring, alienating encumbrance or disposing off any of its assets without any specific permission/ leave of arbitral tribunal.”
Ericsson, which signed a seven-year deal in 2014 to operate and manage RCom’s nationwide network, had filed the insolvency petition in September 2017, seeking total dues of ₹1,150 crore, an amount disputed by RCom.
“The respondent (Ericsson) has made an arguable case and the tribunal is of the opinion that in the event it is denied any relief, it will suffer an irretrievable injury,” the NCLT said in the “interim” order dated March 5. “RCom will try to resolve its dispute with Ericsson as the dispute is over the amount of money to be paid,” said a person in the know of the development, who did not wish to be identified. “A 3-4 billion dollar deal can’t be called off because of a dispute of ₹1,000 crore,” the person added.
