The Supreme Court (SC) has asked the Department of Telecommunications (DoT) to prepare a plan to recover adjusted gross revenue (AGR) dues from telecom companies facing insolvency proceedings.
To this end, the SC has asked DoT that whether the spectrum given to these companies can be sold under the Insolvency and Bankruptcy Code (IBC).
In its response, DoT had apprised the apex court that spectrum owned by these telcos cannot be sold under the IBC as it is national property, adding that it has challenged the National Company Law Tribunal’s (NCLT) order in the SC permitting the sale of spectrum.
However, both Reliance Communications (RCOM) and Aircel argued that spectrum is transferable and can be sold and bought.
The SC has adjourned the hearing of the AGR case in relation to the bankrupt telcos to August 14, 2020.