RCOM & RTL: DoT Partially Encashes Bank Guarantees for ₹5.7 Cr License Fee Dues
Reliance Communications Limited (RCOM) and its subsidiary Reliance Telecom Limited (RTL) are facing partial encashment of bank guarantees by the Department of Telecommunications (DoT) for outstanding license fees. RCOM's guarantee of ₹5.73 crore is subject to partial encashment of ₹5.55 crore, while RTL's guarantee of ₹2 crore faces partial encashment of ₹16.25 lakh. The company is assessing the financial and legal implications.
The encashment of bank guarantees directly impacts the company's financial standing and its ongoing corporate insolvency resolution process, indicating a high impact.
The announcement details the partial encashment of bank guarantees by the Department of Telecommunications due to non-payment of license fees, which has negative financial implications for the company.
Reliance Communications Limited (RCOM) has received further communications from the Department of Telecommunications (DoT) on August 18, 2026, regarding the partial encashment of Financial Bank Guarantees (FBGs) furnished by banks on behalf of RCOM and its subsidiary, Reliance Telecom Limited (RTL). This follows earlier disclosures concerning the invocation/encashment of FBGs.
Specifically, the DoT, via a letter dated August 17, 2026, informed the State Bank of India (SBI) that an FBG of ₹5,73,49,933, issued by SBI on behalf of RCOM and expiring on January 23, 2027, is being held as security for outstanding License Fee dues for FY 2023-24, FY 2024-25, and FY 2025-26. Accordingly, DoT has requested SBI to partially encash this guarantee by ₹5,55,42,271, with an amended guarantee to be issued thereafter.
In a similar communication dated August 17, 2026, the DoT informed Bank of Baroda (BoB) about an FBG of ₹2,00,00,000 issued by BoB on behalf of RTL, expiring on June 23, 2027. This guarantee is also held as security for outstanding License Fee dues for FY 2023-24, FY 2024-25, and FY 2025-26. DoT has requested BoB to partially encash this guarantee by ₹16,25,000, with an amended guarantee to follow.
The aggregate amount proposed for partial encashment is ₹5,55,42,271 for RCOM and ₹16,25,000 for RTL, totaling ₹5,71,67,271. RCOM is currently examining the detailed financial and legal implications of these communications, including the consequential impact on the liabilities, claims, and obligations of RCOM and RTL concerning the underlying License Fee dues. The company will take further steps as deemed appropriate, in accordance with applicable law and the ongoing Corporate Insolvency Resolution Process (CIRP) of RCOM and RTL.
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Reliance Communications Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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