DoT Forms Committee to Examine Issues Arising Out of Telcos’ Insolvency

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, BusinessLine reported. 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. Read mroe

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