In a first, the Department of Telecommunications (DoT) has constituted an Insolvency Issues Committee to examine how it can protect its interest in cases where telecom operators are undergoing insolvency proceedings.
The moves comes as two operators Aircel and Reliance Communications (RCom) are undergoing bankruptcy proceedings.
As per rules under the Insolvency and Bankruptcy Code (IBC) rules, DoT is an operational creditor when telecom companies initiate Corporate Insolvency Resolution Process (CIRP).
However, there is a view within DoT that spectrum being a natural resource may be seen outside the purview of the insolvency rules.
The committee, constituted by the DoT secretary, will also look into the legal position of resources (spect…
Read the full article at: https://www.thehindubusinessline.com/info-tech/dot-forms-committee-to-examine-issues-arising-out-telcos-insolvency/article26798617.ece