Supreme Court upholds ban on selling telecom spectrum under IBC
Business
The Supreme Court has stuck to its earlier decision: telecom spectrum is not something companies like RCom can sell off to pay debts under the Insolvency and Bankruptcy Code.
RCom and its subsidiary tried to challenge a February ruling, but their review petitions were dismissed in July, with the news made public on September 8.
RCom spectrum sale plan blocked
This ruling is a big deal for RCom's ongoing insolvency process, since selling spectrum was part of its plan to resolve debt; that is now off the table.
The court made it clear that spectrum is a public resource, not just another asset you can trade.
RCom is now figuring out how this impacts its finances and operations, and the decision could affect other telecom companies facing insolvency, too.