Govt likely to oppose sale of RCom, Aircel spectrum unless AGR dues cleared: Report

The telecom department will reportedly oppose the transfer of the right to use the spectrum of bankrupt telecom companies undergoing insolvency proceedings such as Reliance Communications and Aircel unless their statutory dues are paid off, officials said.

The central government will take this stance before NCLAT (National Company Law Appellate Tribunal), Economic Times reported.

If not the telecom companies, then the recipient of the airwaves must be held liable for statutory dues including adjusted gross revenue (AGR) dues.

Last week, the apex court held that NCLAT will determine whether the right to use spectrum held by ailing telecom service provider Aircel can be transferred while its dues are pending.

According to experts, the department of telecommunications’ stance will further hamper asset monetisation plans of bankrupt telecom companies and affect lenders adversely who are awaiting for proceeds of the sale.

It is worth noting that telecom giants and DoT have been embroiled in a legal fight over AGR dues.

On several occasions, the government has maintained that the spectrum is a national asset that cannot be transferred to a third party unless statutory dues are paid.

While resolution professionals had argued that spectrum cannot be kept idle and that they could reassign these rights to recover dues.

On the other hand, the insolvent telecom firms had said lenders including public banks would be affected if airwaves are not permitted to be transferred.