SC questions spectrum sale by bankrupt telecom companies

Mumbai : The government told the Supreme Court on Monday that spectrum of the bankrupt telcos who owe statutory dues cannot be sold, raising a cloud over resolution plans of Reliance Communications (RCom ) and Aircel. The DoT has filed an appeal in SC against sale of airwaves, which if accepted, will break down all asset monetisation plans and deal a blow to lenders.
“Spectrum can never be a subject of sale in IBC proceedings,” solicitor general Tushar Mehta told the three-judge SC bench, headed by Justice Arun Mishra. The bench was hearing the adjusted gross revenue (AGR) case. RCom and its units have AGR dues of almost Rs 25,000 crore while Aircel owes the government Rs 12389.00 crore. The AGR dues are over and above other statutory dues.
“If you don’t appeal quickly, how will you prevent spectrum from being sold off ?,” the bench asked Mehta.