Mukesh Ambani-led Reliance Jio Infocomm Limited (RJIL) and Anil Ambani-led Reliance Communications (RCom) have jointly written to the Department of Telecommunications (DoT) seeking its clearance for the ₹25,000 crore deal between the two companies, failing which RCom, with a total dues of ₹45,000 crore, will have to face insolvency proceedings and RJIL’s operations may be impacted.

DoT had refused to approve the deal last month citing lack of conformity with the spectrum trading guidelines after RJIL on December 14 wrote to DoT refusing to take liabilities for the past dues of RCom.

Now, both firms, in a letter to DoT, on Thursday had assured that past liabilities of RCom will be borne by the seller and future liabilities will be borne by the buyer. Both RCom and RJIL officials confirmed that a joint letter had been written to DoT.

“We have jointly written to DoT requesting them to approve the deal. We have assured DoT that any liability arising out of past dues of RCom will borne by the seller and future liabilities will borne by RJIL from the date of sale of spectrum,” said a person familiar with the development.

The letter cited corporate guarantee of ₹1,400 crore given to DoT by RCom arm Reliance Realty Limited.

“The requirement of giving the bank guarantee as per DoT’s demand has been substituted by the orders of the TDSAT and the Supreme Court, with Reliance Realty Limited providing a non-disposal undertaking and corporate guarantee.”

Meeting guidelines

“So, compliance with the [spectrum] trading guidelines is met,” said the person, adding that being a licencee of DoT, RCom is committed to discharge any outstanding or disputed amount subject to final adjudication.

This letter comes at a time when RCom’s contempt petition against DoT for not granting approval to the deal is likely to come up for hearing on Monday.

“We are sincerely hoping that DoT would comply with the order of the Supreme Court dated 14 December 2018 — in letter and spirit — and grant the long-awaited NOC/consent,” said an RCom official.

Meanwhile, Ericsson India has initiated contempt proceedings against RCom for failing to pay dues worth ₹550 crore as per the Supreme Court’s order. This case also may come up for hearing on Monday.

Earlier, the National Company Law Appellate Tribunal had adjourned the Ericsson matter to January 22 to take into consideration the outcome of the decision of the Supreme Court, where a related matter is pending consideration.