The Delhi High Court ordered on Monday that the non-encashment of Reliance Communications’ (RCom) ₹800 crore bank guarantees by major lenders will not be classified as an “RBI default” until the next hearing scheduled for September 3, 2026.
The ruling provides temporary relief to Yes Bank, State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank following petitions challenging the Department of Telecommunications’ (DoT) attempt to invoke the guarantees.
| Key Aspect | Details / Facts |
| Guarantee Value | ₹800 Crore (Valid until 2027) |
| Involved Lenders | Yes Bank, SBI, PNB, Canara Bank |
| Presiding Judge | Justice Mini Pushkarna |
| Next Hearing Date | September 3, 2026 |
| Core Conflict | DoT seeking to invoke guarantees vs. Banks & Resolution Professional disputing legality |
Core Arguments Presented
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Lenders & Resolution Professional: Argue that RCom is currently undergoing the Corporate Insolvency Resolution Process (CIRP) and that the DoT has already filed claims as an operational creditor for spectrum dues. They contend that the government is misinterpreting a February 13 Supreme Court verdict on spectrum transfer, rendering the invocation arbitrary and illegal.
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Department of Telecommunications (DoT): Maintains that because it has not been formally recognized as an operational creditor for these specific dues, it retains an independent legal right to encash the guarantees directly against the banks acting as sureties.
