MUMBAI: Four weeks ahead of telecom tribunal’s deadline, Reliance Communications (RCom) and its subsidiaries have reinstated bank guarantees (BGs) aggregating Rs 774 crore with the Department of Telecommunications (DoT) while the deadline was of 10 September.

The issue stems from the time when DoT issued two show-cause notices to RCom. DoT threatened to cancel its licences in 14 circles and revoke spectrum allotted in 2013 and 2015. The latest move has ensured the non-cancellation of license and spectrum. Following the reinstating, the RCom stock was up 2.3 per cent at Rs 19.94 on the BSE at midday trade Monday.

"RCom and its subsidiary, Reliance Telecom Ltd, have today reinstated bank guarantees aggregating Rs 774 crore with the Department of Telecommunications (DoT), four weeks ahead of the last date of10 Sep 2018 as granted by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT)," said the telco in a regulatory filing on Monday.

"The reinstatement of the BGs ensures that RCom’s licence and spectrum value of Rs 11,300 crore stands fully protected, and RCom is fully compliant with the guidelines of NIA 2013 and NIA 2015," the telco added.

Earlier RCom moved TDSAT against DoT’s notices and told the tribunal in prior hearings that cancelling licences would push the telco back into insolvency as it would not be able to complete deal with Jio. However, RCom expects to raise Rs 18,000 crore from the deal with Jio.