SBI, govt clash on spectrum sale in insolvency cases at SC

SBI says that spectrum is an intangible asset that can be monetized for creditors’ recovery

- Jatin Grover

The State Bank of India told the apex court on Wednesday that telecom spectrum should be treated as part of the insolvency process and sold to recover dues

(REUTERS)

India’s largest lender is on a collision course with its owner, the Union government.

The State Bank of India (SBI) told the Supreme Court on Wednesday that telecom spectrum should be treated as part of the insolvency process and sold to recover dues, setting up a direct clash with the government over the treatment of this key asset when a telecom operator undergoes bankruptcy proceedings.

Arguing in the Aircel spectrum ownership case, SBI said that spectrum is an intangible asset that can be monetized for creditors’ recovery, while the government maintained it belongs to the state and held in trust for the public, not subject to the Insolvency and Bankruptcy Code (IBC).