The government might oppose transfer of the right to use spectrum of bankrupt telecom companies such Aircel and Reliance Communications (RCom), unless the adjusted gross revenue (AGR) dues are cleared. The Department of Telecommunications (DoT) will challenge the move before the National Company Law Appellate Tribunal (NCLAT) makes a decision, according to a report by The Economic Times.
Moneycontrol could not independently verify the story.
The Supreme Court on September 25 allowed the NCLAT to decide on the issue of spectrum sale in the case of Aircel.
If not the companies, then their buyer or recipient of the spectrum under the insolvency proceedings should be held liable for the outstanding AGR dues, officials told The Economic Times.
"The telcos can get clearance (to go ahead with spectrum transfer) if they pay their statutory dues," one of the officials said in the report.
"If they (bankrupt telcos) are unwilling, will the buyer (of spectrum) pay? The telcos need to make this clear," the official added.
The Reserve Bank Bank of India (RBI) has rejected UV Asset Restructuring Company's (UVARCL) resolution plan for Aircel, according to media reports.
Telecom companies facing insolvency proceedings owe a combined Rs 38,959.58 crore as balance AGR-related dues, according to a written reply in the Rajya Sabha. Aircel owes Rs 12,389 crore, while RCom has pending dues of Rs 25,194.58 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
