DoT asks Aircel to return spectrum as arrears unpaid

MUMBAI: The Department of Telecommunications (DoT) has demanded that Aircel return its spectrum to the government since it has not cleared the arrears against it, creating a major hurdle in the carrier’s bankruptcy process that could hurt lenders.

The department on Monday told the dedicated bankruptcy court that Aircel did not own the spectrum as an asset, a stance which the defunct telecom operator opposed, saying that without airwaves, its entire resolution process would go kaput. The government’s stand, if accepted, could affect the bankruptcy process of another telco, Reliance Communications, as well, hurting its lenders too. Without spectrum — their most valuable asset — both telcos would be less attractive to buyers.