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RCom, Jio end sale agreement by mutual consent
Business

RCom, Jio end sale agreement by mutual consent

Agency News

New Delhi, Mar 18: Telecom Company Reliance Communications Group (RCom), which is facing a financial problem due to industrialist Anil Ambani's massive financial crisis, terminated the deal to sell its telecom assets to Reliance Jio Infocomm, the mobile telecom firm controlled by his elder brother Mukesh Ambani.

The loan settlement of RCom will be done through the National Company Law Tribunal (NCLT). On Monday, RCom Group said the deal has been cancelled with mutual consent.

"The agreements dated 28 December 2017 and 11 August 2018 entered into between RCom, RTL, RITL (RCOM Group) and RJIL respectively for sale of certain specified telecom assets have been terminated today by mutual agreement," said RCom said.

The deal has not been completed in nearly 15 months. It said that RCOM has not received NOC from its 40 domestic and foreign lenders so far. As many as 45 meetings took place.

The Department of Telecommunications has also not given permission. It said that on February 1, the company's board meeting had decided to settle all the loans through NCLT and for this, an appeal was made to it in Mumbai on February 4, 2019.

The NCLT has banned the sale or transfer of all movable and immovable properties of the company. Now the next hearing in the NCLT will be on April 8.

Anil Ambani's R Com Group's companies - R Com, RTL and RITL - had entered into two agreements on 28 December 2017 and 11 August 2018 to sell their property to Mukesh Ambani's telecom firm Reliance Jio.UNI