The Supreme Court has ruled that Reliance Communications Ltd. has to furnish corporate guarantees of Rs 1,400 crores in order to facilitate the sale of its spectrum to Reliance Jio Infocomm Ltd. within the course of two days.

A bench headed by Justice Rohinton Nariman asked the government to issue a no-objection certificate within seven days as soon as the guarantee is submitted for the spectrum sale.

According to the court, the corporate guarantee submitted following an order of Telecom Dispute Settlement Appellate Tribunal which is already backed by properties as assurance is sufficient for the government approval.

Rcom, in its previous hearing to a different bench, stated that to the insolvency proceedings against the company, it cannot submit the Rs 2,940-crore bank guarantees demanded by the Department of Telecommunications. It also said that a delay in government’s permission might result in the collapse of the deal of asset sale with Reliance Jio, all together and banks might end up getting no money at all.

In today’s hearing, lawyers Kapil Sibal and Mukul Rohatgi told the court that Reliance Realty, which owns the properties submitted before the tribunal, will give the corporate guarantee in two days.

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