In the ongoing case of Jio and RCom, the Supreme Court held a hearing on 14th August.
The owner of Reliance Communication is Anil Ambani and the owner of Jio is Mukesh Ambani. Both companies had been sharing their spectrum since September 2016.
In the hearings so far the Supreme Court has asked RCom to explain the drop in their evaluation from 35,000 Crore to 5000 Crore.
On 14th August, the Supreme Court asked why can’t Jio assume RCom’s liability since they share the same spectrum. In response, Jio’s lawyers said, “The spectrum-sharing guidelines do not make any provision for sharing of liabilities or for their being joint and several liabilities of the dues (past or present AGR, spectrum usage charge (SUC), etc) of the sharing operators wherever such ‘spectrum sharing’ was reported. Had this been so, RJIL (Jio) would at no point have entered into this spectrum sharing arrangement.”
Jio also said, “RJIL reiterates its earlier submissions and categorically states that it is not intending to acquire any spectrum which presently is held by RCOM, even if the sale of such spectrum is permitted by the top court…The impression created that the asset reconstruction company could be fronting for someone is erroneous.”
It seems that Jio is absolutely not willing to pay the liability for RCom and this has upset the investors and other stakeholders of the company.