Telecom Service Providers (TSPs), including Aircel Group entities, failed to pay license fees and spectrum usage charges to the Department of Telecommunication (DoT), accumulating significant dues. When DoT attempted recovery, the TSPs invoked the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) to restructure their assets, including spectrum. The NCLAT, in its judgment, made several conclusions regarding the nature of spectrum as an asset, the classification of DoT's dues as operational debt, and the transferability of spectrum rights under insolvency, which were subsequently challenged in appeals before the Supreme Court.
Aircel Group entities (Aircel Limited, Aircel Cellular Limited, and Dishnet Wireless Limited) were granted telecom licences by the DoT under Unified Access Service Licences (UASL) on 05.12.2006 for a term of twenty years.
Domestic lenders, including the State Bank of India, extended rupee term loan facilities aggregating to ₹13,729 crores under a Rupee Loan Facility Agreement dated 29.03.2014, followed by Indentures of Mortgage dated 02.05.2014.
The corporate debtors acquired rights to use spectrum in the 900 MHz, 1800 MHz, and 2100 MHz bands for ₹6,249.27 crores in auctions conducted by DoT during 2010, 2014, 2015, and 2016.
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Aircel Group entities were granted telecom…
Domestic lenders, including State Bank of…
Telecom Service Providers (TSPs), including Aircel Group entities, failed to pay license fees and spectrum usage charges to the Department of Telecommunication (DoT), accumulating significant dues. When DoT attempted recovery, the TSPs invoked the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) to restructure their assets, including spectrum. The NCLAT, in its judgment, made several conclusions regarding the nature of spectrum as an asset, the classification of DoT's dues as operational debt, and the transferability of spectrum rights under insolvency, which were subsequently challenged in appeals before the Supreme Court.
Aircel Group entities (Aircel Limited, Aircel Cellular Limited, and Dishnet Wireless Limited) were granted telecom licences by the DoT under Unified Access Service Licences (UASL) on 05.12.2006 for a term of twenty years.
Domestic lenders, including the State Bank of India, extended rupee term loan facilities aggregating to ₹13,729 crores under a Rupee Loan Facility Agreement dated 29.03.2014, followed by Indentures of Mortgage dated 02.05.2014.
The corporate debtors acquired rights to use spectrum in the 900 MHz, 1800 MHz, and 2100 MHz bands for ₹6,249.27 crores in auctions conducted by DoT during 2010, 2014, 2015, and 2016.
…Aircel Group entities were granted telecom…
Domestic lenders, including State Bank of…