Supreme Court directs RCom to seek high court relief on DoT guarantee move

The Supreme Court on Tuesday declined Reliance Communications' plea for one-week interim protection against the Department of Telecommunications' move to encash a bank guarantee worth ₹802 crore. However, the bench clarified that it was not making any pronouncement on the merits of the company's challenge to the DoT's action.

RCom had approached the apex court seeking emergency relief and a stay on the DoT's decision to recover the amount through the guarantee. The company had argued that the action was unjustified and required urgent intervention.

Instead of granting the requested interim protection, the Supreme Court directed RCom to approach the competent high court with its grievances. The court's decision indicates that the matter requires examination at the appropriate jurisdictional level before any merit-based assessment can be undertaken.

The bank guarantee in question relates to RCom's obligations under telecom regulations. The DoT's decision to invoke it represents a significant development in the company's ongoing financial and regulatory challenges. RCom is expected to file its petition before the high court, where it can present a full case on the substance of the dispute and seek appropriate interim relief if required.