SC TELLS RCOM, JIO TO MAINTAIN STATUS QUO ON ASSET SALE

NEWDELHI: Anil Ambani-led Reliance Communications is likely to miss the March 31 deadline to sell its wireless assets to Mukesh Ambani-backed Reliance Jio Infocomm Ltd to pay off Reliance Communications’ lenders, as the Supreme Court on Thursday asked the two companies to maintain status quo on their planned ₹25,000 crore asset sale until the next hearing.

The matter was brought before a three-judge bench headed by justice AK Goel, who will hear the case on April 5. The firms have been asked to file their written submissions by March 28.

The Supreme Court had initially suggested sending the matter back to the Bombay high court, which was opposed by both State Bank of India (SBI) and Reliance Communications.

“The value of the asset in consideration, i.e., spectrum is deteriorating by the day,” Tushar Mehta, counsel for SBI, told the court.

“As legally advised, Rcom remains confident that its asset monetisation programme will be completed expeditiously to protect the interests of its secured lenders, much in advance of the time limit of August 31, 2018 prescribed by the RBI for resolution of such cases,” a spokesperson for Reliance Communications said.

SBI had moved the Supreme Court on March 20, seeking approval for the sale of Reliance Communications’ assets to Reliance Jio.

While Reliance Communications owes ₹45,000 crore to its lenders, total dues to SBI as on February 28 stood at ₹4,027 crore.