New Delhi, August 19
The SBI-led Committee of Creditors (CoC) for Reliance Communications (RCom) advised the Supreme Court on Wednesday that if spectrum sale isn’t allowed, then the telecom firm will discover itself going into liquidation and it gained’t assist anybody.
The CoC advised the highest court docket that RCom isn’t searching for to run away from Adjusted Gross Revenue (AGR) associated dues by hiding itself behind Insolvency and Bankruptcy Code (IBC) however the telecom firm owes over Rs 42,000 crore to the banks.
A Bench of Justices Arun Mishra, S Abdul Nazeer and MR Shah was advised by senior advocate Harish Salve, representing the CoC for RCom and Reliance Jio stated that each banks and the Department of Telecom are searching for reimbursement of the general public cash.
“If spectrum sale is not allowed, RCom will find itself going into liquidation and it won’t help anyone,” Salve stated.
The Bench noticed that sale of spectrum is allowed beneath buying and selling pointers however how can or not it’s offered beneath the IBC.
It stated that every one decision transactions should be as per the IBC and buying and selling pointers present that dues have to be taken care of earlier than the sale of spectrum. The Bench advised Salve that the IBC has relegated dues of the federal government behind the banks, after which in such a situation, how will prior dues be paid, as required by the buying and selling pointers.
Salve, throughout almost two-hour listening to, advised the bench that there isn’t a query of sale of spectrum with out the nod of DoT and even the decision applicant says the plan entails sale of proper to make use of spectrum, solely topic to DoT approval.
He stated the problem of sale of spectrum is to be determined by the DoT and within the current situation it’s even attainable for the best bidder UV Asset Reconstruction Company (UVARC) to again out of the bid with DoT now saying that spectrum sale can’t be allowed beneath the IBC. — PTI