SC to rule as govt divided on spectrum sale in bankruptcy

The Centre argued in the Supreme Court that telecom spectrum belongs to the citizens and can’t be traded in insolvency cases.

- Jatin Grover

But the two ministries involved differed on whether such a key national resource can be transferred in such situations.

The SC last week reserved its verdict on the treatment of spectrum in bankruptcy cases. But the department of telecommunications (DoT) and ministry of corporate affairs (MCA) were at odds over how spectrum is to be treated in insolvency cases of Aircel and Reliance Communications, said two people in the know, seeking anonymity.

The DoT held that the spectrum is a natural resource and can’t be sold during liquidation, while corporate affairs ministry was of the view that airwaves must be tradable so that creditors like banks can recover their dues, one of the two people said. RCom, Aircel and Videocon went bankrupt over 2018 and 2019, leaving unpaid dues of over ₹40,000 crore.