The Supreme Court (SC) is extremely worried that almost the entire adjusted gross revenue (AGR) dues owed to the government by telecom operators will be wiped out by the Insolvency and Bankruptcy Code (IBC) process.
A three-member bench which continued to hear the AGR matter sought to know whether a liability like AGR could be wound up in this fashion, under the guise of selling spectrum under IBC.
The SC Bench observed that under IBC, spectrum trading is different from sale of spectrum adding that unless dues are paid, nobody can start using the spectrum. It further observed that after the sale of spectrum, the new user will have extinguished any pending demand against the spectrum in question.
