SC seeks govt's view on whether or not Jio should pay RCom's AGR dues
min study . Updated: 17 Aug 2020, 05:10 PM IST
Ishita Guha, Japnam Bindra
Reliance Jio told the Supreme Court on Monday that there is no criminal foundation for moving bankrupt RCom’s dues, AGR or otherwise, to Jio as the two telecom operators in a spectrum-sharing settlement do not proportion liabilities
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Jio
NEW DELHI: The Supreme Court on Monday said the government should express its stand on Reliance Jio Infocomm Ltd the usage of bankrupt Reliance Communications’ spectrum in view that 2016, and requested the Centre to proportion its view on getting better adjusted gross sales (AGR) dues of RCom from Jio.
The apex courtroom also asked if Reliance Jio may be held chargeable for AGR and other dues of RCom because it has been incomes sales by using the usage of the latter’s airwaves within the 800 megahertz band beneath an asset-sharing settlement. The court has adjourned the case to 19 August.
Reliance Jio, in a written submission on Monday, instructed the Supreme Court that there's no criminal foundation for moving bankrupt RCom’s dues, AGR or in any other case, to Jio as two telecom operators in a spectrum-sharing agreement do not percentage liabilities.
Senior attorney Harish Salve, representing Reliance Jio, submitted that the employer is neither involved inside the Insolvency and Bankruptcy Code (IBC) complaints of RCom neither is acquiring the bankrupt telco’s spectrum.
Interestingly, the authorities informed the three-choose bench headed with the aid of Justice Arun Mishra that the DoT and the Ministry of Corporate Affairs (MCA) have divergent views on whether or not the spectrum with a telecom organisation can be offered beneath insolvency proceedings.
The DoT said spectrum is a national property, held by the government in trust, and as a consequence, can not be sold below insolvency court cases. Telcos do no longer very own spectrum, even as any contract permits most effective its use, stated Solicitor General Tushar Mehta.
RCom owes DoT ₹25,199 crore, together with spectrum usage fees (SUC) and licence fees, in step with authorities estimates. This is sort of half of of ₹forty nine,054 crore in dues calculated below the agency’s insolvency lawsuits. Aircel owes ₹12,389 crore to the DoT.
The apex court docket on 10 August had observed that the authorities ought to draw a plan to recover AGR-related dues from bankrupt telecom operators after flagging doubts over the government convalescing any quantity from their insolvency complaints.
It had also asked the branch of telecommunications (DoT) to give an explanation for whether or not spectrum can be offered underneath the Insolvency and Bankruptcy Code (IBC). According to criminal experts, transfer of spectrum to a new customer isn't allowed except beyond dues are cleared and could require amendments in telecom law and regulations.
The DoT, however, can maintain the spectrum with bankrupt telcos, disallowing the sale and commercially auctioning the airwaves once more. Lenders fluctuate on this, with State Bank of India telling the Supreme Court that spectrum is an quintessential asset of telecom businesses.
Ishita Guha, Japnam Bindra
Reliance Jio told the Supreme Court on Monday that there is no criminal foundation for moving bankrupt RCom’s dues, AGR or otherwise, to Jio as the two telecom operators in a spectrum-sharing settlement do not proportion liabilities
Topics
Jio
NEW DELHI: The Supreme Court on Monday said the government should express its stand on Reliance Jio Infocomm Ltd the usage of bankrupt Reliance Communications’ spectrum in view that 2016, and requested the Centre to proportion its view on getting better adjusted gross sales (AGR) dues of RCom from Jio.
The apex courtroom also asked if Reliance Jio may be held chargeable for AGR and other dues of RCom because it has been incomes sales by using the usage of the latter’s airwaves within the 800 megahertz band beneath an asset-sharing settlement. The court has adjourned the case to 19 August.
Reliance Jio, in a written submission on Monday, instructed the Supreme Court that there's no criminal foundation for moving bankrupt RCom’s dues, AGR or in any other case, to Jio as two telecom operators in a spectrum-sharing agreement do not percentage liabilities.
Senior attorney Harish Salve, representing Reliance Jio, submitted that the employer is neither involved inside the Insolvency and Bankruptcy Code (IBC) complaints of RCom neither is acquiring the bankrupt telco’s spectrum.
Interestingly, the authorities informed the three-choose bench headed with the aid of Justice Arun Mishra that the DoT and the Ministry of Corporate Affairs (MCA) have divergent views on whether or not the spectrum with a telecom organisation can be offered beneath insolvency proceedings.
The DoT said spectrum is a national property, held by the government in trust, and as a consequence, can not be sold below insolvency court cases. Telcos do no longer very own spectrum, even as any contract permits most effective its use, stated Solicitor General Tushar Mehta.
RCom owes DoT ₹25,199 crore, together with spectrum usage fees (SUC) and licence fees, in step with authorities estimates. This is sort of half of of ₹forty nine,054 crore in dues calculated below the agency’s insolvency lawsuits. Aircel owes ₹12,389 crore to the DoT.
The apex court docket on 10 August had observed that the authorities ought to draw a plan to recover AGR-related dues from bankrupt telecom operators after flagging doubts over the government convalescing any quantity from their insolvency complaints.
It had also asked the branch of telecommunications (DoT) to give an explanation for whether or not spectrum can be offered underneath the Insolvency and Bankruptcy Code (IBC). According to criminal experts, transfer of spectrum to a new customer isn't allowed except beyond dues are cleared and could require amendments in telecom law and regulations.
The DoT, however, can maintain the spectrum with bankrupt telcos, disallowing the sale and commercially auctioning the airwaves once more. Lenders fluctuate on this, with State Bank of India telling the Supreme Court that spectrum is an quintessential asset of telecom businesses.
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