The Supreme Court on Tuesday said it will finally hear in October a batch of appeals by the government, the SBI-led Committee of Creditors of the Aircel group and others against the National Company Law Appellate Tribunal’s April 2021 order that held that the spectrum can be transferred as part of insolvency resolution plan only after clearing all the government dues.
While the lenders want spectrum of telecom companies transferred to the successful resolution applicant, the DoT has taken a stand that spectrum should return to the government.
The Mumbai bench of the National Company Law Tribunal had in June 2020 approved a Rs 6,630 crore resolution plan of UV Asset Reconstruction Company. While Aircel owes Rs 12,389 crore adjusted gross revenue dues to the DoT, the total dues of a consortium of lenders-led by SBI stood at Rs 58,670 crore. Of this UVARCL had proposed to pay Rs 19,600 crore. The plan which contemplates monetization of the right to use spectrum as a part of the resolution plan is under challenge before the National Company Law Appellate Tribunal.
In a hearing in September last year, the erstwhile Resolution Professional of Aircel Entities had asked the Supreme Court to allow interim sale of right to use spectrum so as to prevent further “diminution, erosion in value and reduction of useful life” of the natural resource.
In the best interest of all the stakeholders and with an aim to preserve the value of the right to use spectrum of the Aircel entities and to avoid further loss to the national interest, the apex court should as an interim measure allow the right to use spectrum be sold subject to proceeds of such sale being kept in an interest bearing escrow account and to be utilised in accordance with its final directions, the application by Vijaykumar V Iyer stated.
However, the telecom department had opposed the proposal.
