Arpit Choudhary Explains Supreme Court Ruling: Spectrum Reverts to DoT, Outside Insolvency Estate
In a recent media interaction following the Supreme Court’s ruling on spectrum treatment under the Insolvency and Bankruptcy Code (IBC), Arpit Choudhary clarified the legal and regulatory implications of the judgment.
Commenting on the decision, Arpit stated that once a telecom licence is treated as terminated or lapsed in accordance with the Unified Licence conditions, the spectrum reverts to the Department of Telecommunications (DoT) and may be re-farmed for future auctions under the existing policy framework.
He further explained that the government is not required to wait for the value distribution process under the Insolvency and Bankruptcy Code, as spectrum in such circumstances ceases to form part of the insolvency estate.
According to him, while the corporate insolvency resolution process of the telecom company may continue with respect to its remaining assets, there is no legal bar preventing the DoT from proceeding with its auction planning. At most, there may be procedural overlap, but not a substantive restriction on regulatory action.
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