The Supreme Court docket on Monday directed the federal government to arrange a plan to get better adjusted gross income (AGR)-related dues from bankrupt telecom operators, together with Reliance Communications Ltd (RCom), Aircel Group and Videocon Communications Ltd.
Whereas observing that restoration of dues might not be doable from telcos present process insolvency, the apex court docket requested the federal government whether or not spectrum might be bought beneath the Insolvency and Chapter Code (IBC). The case has been adjourned to August 14.
The court docket, nevertheless, didn’t point out the order reserved on the staggered fee of dues by Vodafone Concept Ltd, Bharti Airtel Ltd and Tata Teleservices. Each Vodafone and Airtel have sought 15 years to clear the dues, whereas Tata Teleservices desires 7-10 years. Nevertheless, restoration of the dues face a significant hurdle. The division of telecom (DoT) is classed as an operational creditor, RCom stated in its affidavit to the apex court docket. This might imply DoT might be pushed decrease down the pecking order in attempting to get better its dues beneath insolvency proceedings, as monetary collectors are prioritised beneath these proceedings. As an illustration, the profitable bidder for RCom’s spectrum, actual property, enterprise and information centre enterprise UV Asset Reconstruction Co., has provided ₹14,000 crore for these belongings.
DoT could get better subsequent to nothing on its excellent dues of ₹25,199 crore from RCom if this decision plan is authorised.