The query as to who ought to spend the adjusted gross income (AGR) dues of bankrupt telecom operators will now come back to the Supreme Court for resolution. Legal observers mentioned that there will be mostly two problems which the apex court will have to look into – one relating to these insolvent telcos exactly where the resolution plans have been authorized but government dues have not been cleared, and second, exactly where the corporation has sold all its spectrum and has closed down but the government dues are nonetheless unpaid.
The order was pronounced in the matter of Aircel, exactly where the Mumbai bench of the National Company Law Tribunal had in June, 2020 authorized a Rs 6,630 crore resolution strategy of UV Asset Reconstruction Company (UVARCL). The DoT had challenged this in NCLAT last year in September on the ground that spectrum does not belong to telecom operators but is offered to them on lease and upon non-payment it has the correct to seize it back.
Though the order relates to Aircel’s insolvency, it would have implications on equivalent proceedings relating to Reliance Communications exactly where also the committee of creditors have authorized UVARCL’s resolution strategy. The NCLAT order is positive to be challenged in the SC by the lenders of Aircel.
Though a portion of spectrum of Aircel was acquired by Bharti Airtel via trading and that of Rcom by Reliance Jio, they can’t be created to spend for the AGR dues as the SC had ruled that purchasers can only be asked to spend the arrears if they obtain the complete spectrum, not some portion of the entire. Though Bharti had acquired the complete spectrum of Videocon Telecommunications, it has argued that any dues which comes to light immediately after the spectrum trading has been carried out requirements to be paid by the seller, Videocon in this case, and not the purchaser, Bharti.
However, through the course of the hearing it had observed that government dues want to be cleared and duty, as to who pays them, requirements to be fixed.