DoT says stall RCom case till SC ruling

published 22.08.2020 07:40

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The court is examining that if the spectrum belongs to the government and if it is sold under Insolvency and Bankruptcy Code (IBC) then do banks recover their dues first, and not the government which becomes an operational creditor.

DoT has argued that proposed resolution plans are contrary to public interest, and resolution applicant have no intention of reviving RCom or RTL, while the current resolution plans are mere arrangement to dispose of the assets of Rcom and RTL.

The department said that it remains fundamentally opposed to any resolution plan that involves nu-llifying the DoT’s statutory dues payable under licence agreeme-nt u/s 4 of Indian Telegraph Act.

DoT is understood to have filed a 19-page affidavit before NCLT, Mumbai and prayed that the resolution plan be set aside in the light of the matter of insolvency of RCom and RTL being sub-judice in the Supreme Court.

The Department of Teleco-mmunications (DoT) on Friday submitted an affidavit in the Mumbai bench of the National Company Law Tribunal (NCLT) opposing the resolution plan for Reliance Communications (RCom) and its unit Reliance Telecom Ltd (RTL), as no dues are being paid to the government from the proceeds of the ongoing insolvency proceedings.

by Shubhra Tandon from financialexpress.com

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