RCom gives green light to offload wireless unit

Reliance Communications has been given the go-ahead to sell off its wireless business unit after National Company Appellate Law Tribunal removed an order blocking the sale.

The NCLAT had blocked the sale of the wireless assets due to various legal challenges, including one from Ericsson. The Swedes claimed RCom had not paid it for equipment and services for two years, and instead tried to pull a fast one by issuing a few post-dated cheques. After this obstruction has been lifted, RCom is now free to offload the unit to Reliance Jio.

“As directed by the Hon’ble Supreme Court, RCom moved the Hon’ble NCLAT today for vacation of the stay in relation to sale of its tower and fiber assets” a RCom statement reads. “The Hon’ble SC had itself vacated the stay in relation to spectrum, MCNs and real estate yesterday.

“By an interim order passed today, the NCLAT has vacated the remaining stay, and allowed execution of sale deeds and deposit of the proceeds with SBI in an escrow account. Based on these orders, RCom can now proceed with completion of its entire asset monetisation plan, covering spectrum, towers, fiber, MCNs and real estate.”

The delay in the sale would not have been welcomed by Anil and Mukesh Ambani, two brothers who respectively own Reliance Communications and Reliance Jio, and who reportedly not get along. Offloading the wireless business unit is one step in Anil exiting the disruptive and chaotic telco space.