Reliance Communications Ltd (RCOM) confirmed on Tuesday that the Department of Telecommunications (DoT) has terminated its spectrum licenses with immediate effect. The orders, dated October 5, 2026, cover all spectrum acquired by RCOM and its subsidiary Reliance Telecom Ltd (RTL) through auctions between 2010 and 2016. The licenses have been reverted to the Central Government, stripping the companies of the right to use any frequency bands.
The DoT’s decision follows a July 8 notice that demanded the RCOM Group clear outstanding dues and justify why the spectrum shouldn’t be revoked. The company had submitted a response on August 7, but the regulator found the compliance gaps critical. Specifically, the department cited failures to meet roll-out obligations under the 2010 Notice Inviting Applications (NIA), Section 3.4, along with defaults on spectrum usage charges and liquidated damages.
This termination is a severe blow to the ongoing insolvency proceedings. RCOM’s resolution plan, currently under review by the National Company Law Tribunal (NCLT) Mumbai Bench, explicitly relies on the sale of spectrum rights as a primary asset for creditor recovery. Without the licenses, the financial basis of the plan collapses. RTL’s resolution plan faces the same structural void, as it also hinges on monetizing its spectrum holdings.
RCOM stated it is evaluating the financial and operational implications of the order. The company noted that the termination impacts both its own resolution plan and that of RTL. With the assets no longer available for sale, the NCLT proceedings may require a fundamental restructuring of the recovery strategy for creditors.
The DoT emphasized that the 2010 auction terms were strict regarding infrastructure deployment and payment schedules. The regulator’s July notice had given the group a final chance to present a case against termination. That window has now closed, leaving the RCOM Group without the physical assets required to sustain its telecom operations or satisfy its insolvency claims.