DoT cancels spectrum allotted to Reliance Communications and Reliance Telecom with immediate effect

The Department of Telecommunications (DoT) has cancelled, with immediate effect, the spectrum allotted to Reliance Communications (RCOM) and its wholly owned subsidiary Reliance Telecom Limited (RTL). The move adds to the troubles of Anil Ambani.

The companies can no longer use this spectrum to run telecom services.

RCOM has informed the stock exchanges that it received letters from the DoT dated October 5, 2026. The letters said the spectrum allotted under the auctions held in 2010, 2013, 2014, 2015 and 2016 had been cancelled.

The DoT has given its reasons. It said RCOM did not comply with certain conditions linked to the spectrum, including rollout conditions for starting the network and the payments agreed for the spectrum.

The department further said the company had not paid spectrum instalments, spectrum usage charges (SUC) and certain other dues. It added that the rollout conditions for the spectrum auctioned in 2010 had also not been met. The decision was taken on these grounds, the department said.

In its response, the company had cited the protection available under the Insolvency and Bankruptcy Code and the insolvency laws. The DoT did not accept these arguments.

The DoT's action follows a Supreme Court decision of February 13, 2026. The company had also filed a review petition against that decision. According to the DoT, the Supreme Court dismissed the review petition on August 7, 2026.

The DoT has directed RCOM and Reliance Telecom to shut down all wireless networks and services based on that spectrum. Both companies will have to stop the networks and services running on the cancelled spectrum. The decision could affect the financial and business position of both companies.

RCOM is currently undergoing the insolvency resolution process. The company's proposed resolution plan included selling the spectrum as an asset. That proposal is currently pending before the NCLT in Mumbai.