The Department of Telecommunications (DoT) has moved the National Company Law Appellate Tribunal (NCLAT), challenging the bankruptcy court’s approval of Aircel’s resolution plan.
According to the DoT, Aircel’s resolution blueprint is a liquidation plan not aimed at reviving the bankrupt telco and includes the transfer of spectrum, which the government has yet to approve.
The National Company Law Tribunal allowed UV Asset Reconstruction Company Limited (UVARCL) in June 2020 to take over Aircel’s business and run smaller units. The rest of the assets, including spectrum, were to be sold, with the money going to lenders.
To this end, the department is of the view that selling the entire business of corporate data is against the object of the code of revival. Further, it added that the resolution plan of Aircel seeks to transfer the licence and spectrum, without seeking approval of the licensor or DoT, which is contrary to the licence agreement.