NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed two show cause notices issued by the Department of Telecommunications (DoT) to Reliance Communications (RCom) for scrapping its spectrum permits over delay in payment.
Earlier, the DoT served a notice to RCom for defaulting on a Rs 21 crore spectrum payment in Mumbai circle, asking why its spectrum and licence should not be withdrawn. On its part, RCom moved NCLAT seeking a stay on the notices.
Besides, a two-member bench headed by chairman Justice SJ Mukhopadhaya also stayed the DoT’s letter dated March 20, 2019, to Axis Bank to encash the bank guarantee of Rs 2,000 crore provided by the Anil Ambani group firm.
According to the NCLAT ruling, the show cause notices and letter were against its February 4 order, in which it said that no one can sell, alienate or create third-party rights over RCom’s assets. “The show cause notices of March 14 and March 15 and letter dated March 20, 2019, by DoT is against the direction passed by this tribunal,” NCLAT said.